Contact InformationMt Baw Baw Alpine Resort Management BoardPO Box 117, Rawson VIC 3825Phone 03 5165 1136

Facsimile 03 5165 1125

Email info@mountbawbaw.com.au

Web www.mountbawbaw.com.au

Map Reference Melways Map 528 C5

2013 Annual Report Mt Baw Baw Alpine Resort Management Board

CMYK

ADDRESS TO THE MINISTER COMPLIANCE INDEX – to Disclosure RequirementsThe Annual Report of the Mt Baw Baw Alpine Resort Management Board is prepared in accordance with all relevant Victorian

legislation. This index has been prepared to facilitate identification of the Board’s compliance with statutory disclosure

requirements.

LEGISLATION REQUIREMENT .................................................................................................... PAGE

MINISTERIAL DIRECTIONS — Report of Operations – FRD GuidanceAccountable Officer’s declaration SD 4.2(j) Sign-off requirements ............................................................................................................................. Inside Front Cover

Charter and purpose FRD 22D Objectives, functions, powers and duties ................................................................................................ 16-17

FRD 22D Manner of establishment and the relevant Ministers ............................................................................... 16

FRD 22D Nature and range of services provided .................................................................................................... 16

Financial information FRD 22D Operational and budgetary objectives .................................................................................................... 8

FRD 22D Summary of the financial results ........................................................................................................... 8

FRD 22D Major changes or factors affecting performance .................................................................................... 8

FRD 22D Subsequent events .................................................................................................................................. 7

FRD 22D Significant changes in financial position during the year ........................................................................ 8

Governance and organisatiional structure FRD 22D & SD2.2(f) Organisational structure ......................................................................................................................... 20

FRD 22D Occupational Health and Safety policy .................................................................................................... 25

FRD 22D Employment and conduct principles ....................................................................................................... 25

FRD 29 & 22D Workforce Data disclosures .................................................................................................................... 25-26

FRD 15B Executive Officer disclosures .................................................................................................................. 51

Other Information FRD 10 Disclosure index ..................................................................................................................................... Inside Back Cover

FRD 25 & 22D Victorian Industry Participation Policy disclosures ................................................................................. 22

FRD 22C Details of consultancies in excess $10,000 ............................................................................................ 22

FRD 22C Details of consultancies under $10,000 ................................................................................................. 22

FRD 22D Disclosure of government advertising expenditure ................................................................................. 21

FRD 12A Disclosure of major contracts ................................................................................................................. 22

FRD 22D Application and operation of Freedom of Information Act 1982 ........................................................... 21

FRD 22D Compliance with Building Act 1993 ....................................................................................................... 25

FRD 22D Statement on National Competition Policy ............................................................................................. 22

FRD 22D Application and operation of the Protected Disclosures Act 2012 ........................................................ 22

FRD 22D Statement of availability of other information ........................................................................................ 21

SD 4.5.5 Risk management compliance attestation ............................................................................................... 21

SD 4.5.5.1 Insurance attestation ............................................................................................................................... 21

PC 2012/02 Gifts, benifits and hospitality attestation ................................................................................................. 21

SD 4.2(g) General information requirements .......................................................................................................... Entire Document

LEGISLATION Alpine Resorts Management Act 1997 ..........................................................................................................................................

Building Act 1983 ................................................................................................................................................................

Financial Management Act 1994 ..................................................................................................................................................

Freedom of Information Act 1982 .................................................................................................................................................

Protected Disclosures Act 2012 ....................................................................................................................................................

Victorian Industry Participation Policy Act 2003 .........................................................................................................................

Print and Design

FRD 30 Standard requirements for the design and print of annual reports .......................................................... Entire Document

January 2014

The Honourable Ryan Smith, MP Minister for Environment and Climate Change Level 7, 8 Nicholson St EAST MELBOURNE VIC 3002

Dear Minister Smith

MT BAW BAW ALPINE RESORT MANAGEMENT BOARD – ANNUAL REPORT We have much pleasure in submitting to you for presentation to Parliament, the Annual Report of the Mt Baw Baw Alpine Resort Management Board, covering the period 1 November 2012 to 31 October 2013.

The Annual Report has been prepared in accordance with the Financial Management Act 1994 and the Alpine Resorts (Management) Act 1997.

On behalf of the Board, we extend our appreciation for your support and also the support and cooperation of the Department of Environment and Primary Industries throughout the year.

Yours sincerely,

Vicky Papachristos Stuart Ord CHAIR CHIEF EXECUTIVE OFFICER BOARD OF MANAGEMENT

MT BAW BAW ALPINE RESORT MANAGEMENT BOARD The Mt Baw Baw Alpine Resort Management Board (the Board) is responsible for the development and management of the Mt Baw Baw Alpine Resort, comprising 355 hectares, situated at an altitude of approximately 1,500 metres and bound on two sides by the Baw Baw National Park and two sides by Baw Baw State Forest.

The Board assumed management of the Mt Baw Baw Alpine Resort from the former Alpine Resorts Commission on May 1, 1998 and is accountable for the development, promotion, management and use of the resort on a sustainable basis. It provides a diverse range of services and performs its functions in an environmentally sound way.

The Board operates under the Alpine Resorts (Management) Act 1997. The Act sets out the objectives for the management of Victoria’s alpine resorts.

Resort use is to be for alpine recreation and tourism, in all seasons of the year; and accessible to persons from varied cultural and economic groups. The management of the resort is to be undertaken in a manner which is respectful of the alpine environment having regard to economic, environmental and cultural sustainability.

ALPINE RESORTS STRATEGIC PLAN 2012 The Alpine Resorts Strategic Plan 2012 (2012 Plan) was released by Government in December 2012.

This plan provides the guidance for the long term planning and management of Victoria’s six alpine resorts, and has as its guiding vision that:

Victoria’s alpine resorts will be vibrant, growing and sustainable places, delivering alpine recreational and tourism experiences that are available to all.

The Board, in reviewing its own Corporate and Strategic Plans, has ensured alignment with the 2012 Plan, in particular focusing upon the actions detailed in the six key Strategic Objective areas of Enhancing the Visitor Experience and Developing Resorts, Delivering Resort Services and Infrastructure Efficiently and Accountably, Building Partnerships, Respecting the Alpine Environment, Broadening Access Opportunities and Regulatory Reform.

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MT BAW BAW ALPINE RESORT MANAGEMENT BOARD

CONTACT INFORMATION Mt Baw Baw Alpine ResortManagement Board PO Box 117, Rawson VIC 3825 Phone: (03) 5165 1136 Facsimile: (03) 5165 1125 Email: info@mountbawbaw.com.au Web: www.mountbawbaw.com.au Map Reference: Melways Map 528 C5 ABN: 30 402 472 781

© State of Victoria, Mt Baw Baw Alpine Resort Management Board 2013.

This publication is copyright. No part may be reproduced by any process except in accordance within the provisions of the Copyright Act 1968.

45th Tullicouty Cup

New guests

Big Air Bag summer activities

Ramahyuck District Aboriginal Corporate workshop

Huskies at Mt Baw Baw Summit

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This Report, prepared by the Mt Baw Baw Alpine Resort Management Board (the Board), covers the period 1 November 2012 to 31 October 2013, in accordance with the relevant provisions of the Financial Management Act 1994 and the Alpine Resorts (Management) Act 1997.

The standard design and layout for Annual Reports, as standard FRD 30A, has been adhered to in this Report.

CONTENTS Page

Address to the Minister ................................................................................. Inside Front Cover Mt Baw Baw Alpine Resort Management Board contact information ................................................ 1 Resort Profile: Mission and Vision............................................................................................................................42013 Chair’s Report ...................................................................................................................................................5Chief Executive Officer’s Report ................................................................................................................................6

The Year in Review1 Finance .................................................................................................. 7

Summary of Financial Results ..................................................................................................................................7Subsequent Events ....................................................................................................................................................7Financial Review of Operations and Financial Conditions ........................................................................................8Major changes and/or Factors Affecting Performance .............................................................................................8

2 Enhancing the Visitor Experience and Growing the Resort .................................... 8Resort Entry – Alpine Easy Access ...........................................................................................................................8Arts & Culture Program ............................................................................................................................................8Summer Events 2012/13 ..........................................................................................................................................9Trail Development ......................................................................................................................................................9Adventure Hub ...........................................................................................................................................................9Packages and Group Sales ......................................................................................................................................10Marketing .................................................................................................................................................................10Social Media/Online Marketing ...............................................................................................................................10Refreshed Website ..................................................................................................................................................10Night Skiing .............................................................................................................................................................10

3 Operational Maintenance .......................................................................... 10Ski Area and Trail Grooming ...................................................................................................................................10Lift Operations .........................................................................................................................................................10Snowmaking ............................................................................................................................................................11Ski School ................................................................................................................................................................12Operational Maintenance .........................................................................................................................................12Ski Patrol Operations ...............................................................................................................................................12Analysis of Injury Statistics .....................................................................................................................................12Summer Civil/Building Construction .......................................................................................................................13Central Accommodation Booking Service (CABS) .................................................................................................13Information and Communications Technology (ICT) .............................................................................................13

4 Building Partnerships .............................................................................. 14

5 Respecting the Environment ...................................................................... 14Species Research Program .....................................................................................................................................14Feral Species Eradication Programs .......................................................................................................................15Land Stability ...........................................................................................................................................................15Water Management .................................................................................................................................................15

6 Broadening Access Opportunities ................................................................ 16Adaptive Ski Program..............................................................................................................................................16Support for Disadvantaged Groups ........................................................................................................................16Indigenous Peoples .................................................................................................................................................16

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7 Regulatory Reform .................................................................................. 16Leasing ....................................................................................................................................................................16Statutory Land Use Planning ..................................................................................................................................16

8 Governance and Compliance ...................................................................... 16The Mt Baw Baw Apline Management Board .........................................................................................................16Board Functions ......................................................................................................................................................16Board Appointments ...............................................................................................................................................17Board Member Profiles ...........................................................................................................................................18Board Committees ...................................................................................................................................................19Mt Baw Baw Alpine Resort Organisational Structure .............................................................................................20Risk Management ...................................................................................................................................................21Risk Management Attestation .................................................................................................................................21Gifts, Benefits and Hospitality Attestation ...............................................................................................................21Insurance Attestation ..............................................................................................................................................21Advertising Expenditure ..........................................................................................................................................21Freedom of Information ..........................................................................................................................................21Information ..............................................................................................................................................................22National Competition Policy ....................................................................................................................................22Major Contracts .......................................................................................................................................................22Victorian Industry Participation Policy Act 2003 ...............................................................................................22Major External Reviews ...........................................................................................................................................22Overseas Visits Undertaken ....................................................................................................................................22Details of Consultancies over $10,000 ...................................................................................................................22Details of Consultancies under $10,000 .................................................................................................................22Protected Disclosures Act 2012 ...........................................................................................................................22Reporting Requirements under the Financial Management Act 1994 ................................................................24Details of Shares held in Statutory Authority or Subsidiary ...................................................................................24Publications Produced/Reviewed ...........................................................................................................................24Office based Environmental Impacts ......................................................................................................................24Purchasing ...............................................................................................................................................................24Building Services .....................................................................................................................................................24Major Public Relations and Promotional Activities .................................................................................................24Fair Trading Act 1999 .............................................................................................................................................24Information Privacy .................................................................................................................................................24Research and Development ....................................................................................................................................25Building Act 1993 ...................................................................................................................................................25Statutory Reporting .................................................................................................................................................25Corporate Plan .........................................................................................................................................................25Annual Report ..........................................................................................................................................................25Workforce and Organisational Development ..........................................................................................................25Occupational Health & Safety..................................................................................................................................25Equal Employment Opportunity .............................................................................................................................25Industrial Relations .................................................................................................................................................25Workforce Data ........................................................................................................................................................25Training and Development ......................................................................................................................................26Staff Induction Program ..........................................................................................................................................26Relevant Information ...............................................................................................................................................27

Finance ......................................................................................................... 30 Table of Contents .....................................................................................................................................................30Declaration by Accountable Officers .......................................................................................................................31Comprehensive Operating Statement .....................................................................................................................32Balance Sheet ..........................................................................................................................................................33Statement of Changes in Equity ..............................................................................................................................34Cash Flow Statement ...............................................................................................................................................35Notes to the Financial Statements ..................................................................................................................... 36-54Auditor General’s Report ................................................................................................................................... 55-56Compliance Index ...........................................................................................................................Inside Back Cover

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Tables Index Table A: Five Year Financial Summary ......................................................................................................................8 Table B: Individual Event Visitation and Revenue Statistics .....................................................................................9 Table C: Ten Year Overview of Operations Statistics ...............................................................................................11Table D: Operational Ski Patrol Statistics 2010-2013 ............................................................................................12Table E: Key Performance Indicators - Environmental ...........................................................................................15Table F: Board Meeting Attendance Register ..........................................................................................................18Table G: Details of Consultancies over $10,000 ....................................................................................................22Table H: Disclosures under the Whistleblower Protection Act 2001 ...................................................................23Table I: Staffing Profile during 2012/13 & 2011/12 ...............................................................................................26Table J: Mt Baw Baw Alpine Resort Management Board KPIs ...............................................................................27Table K: Objectives and Priorities for the Corporate Plan .......................................................................................28

Graph 1: Alpine Easy Access Resort Entry Purchases 2013 ....................................................................................8Graph 2: Natural Snow / Snowmaking ...................................................................................................................11Graph 3: White Season Visitation Trends ...............................................................................................................11Graph 4: Visitor Days ..............................................................................................................................................11Graph 5: Injuries by Percentage ..............................................................................................................................13Graph 6: Accommodation by Year ..........................................................................................................................13

CONTENTS CONTINUED

Resort ProfileThe guiding direction and principles adopted by the Board and its staff in managing the resort are summarised in the following Mission and Vision statements:

The Resorts MissionTo provide a year round Alpine Resort Service within a sustainable environmental, economic and social framework.

The Resorts Vision The Mt Baw Baw Alpine Resort will offer an all year, family friendly, environmentally sensitive, alpine experience.

The Operational Values of the Board and Resort Management are as follows:

The Board will:

— Be accessible, available and will listen to all parties;

— Be honest, fair and transparent in its dealings;

— Give due consideration to the interests of all stakeholders;

— Value all resort stakeholders and partners;

— Provide decisive leadership and governance;

— Ensure the effective and efficient delivery of quality;

— Ensure that social, environmental and ethical responsibilities are met.

Frosti and Friends

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2013 CHAIR’S REPORTMt Baw Baw ARMB Chair Report 2012-2013This last twelve months have been challenging for all at the Resort. We, along with our local stakeholders and the other Victorian Alpine Resorts, were challenged weather-wise during the winter. The poor snow season meant the Board had to make a call on early closure of operation of lifts and snowmaking at the resort. The decision wasn’t easy but we didn’t have much option as it turned out to be the lowest snowfall season in the last twelve years and with that came the lowest visitation. With the benefit of hindsight we are able to confirm that we acted prudently and have an enhanced model for the future that allows us to better understand the complex variables which determine if it is no longer viable to run lifts and snowmaking throughout the winter season.

On a more positive note the summer of 2012-13 saw the continuation of development of green season activities initiated on a test basis in the previous green season. For nature based adventure groups there was fly fishing, downhill and cross country mountain biking, road cycling, trail running and of course nature walks. For the road enthusiasts we hosted a number of car and motor bike rallies. This green season our passionate CEO Stuart Ord and his enthusiastic team are improving these events and are introducing several additional events including Mt Baw Baw as a leading venue in the World’s Longest Lunch - part of the Melbourne Food and Wine Festival. Early indications of the financial viability of the green season events are that they are a profitable business offering which attract visitors and revenues all year round. In 2012-13 the Resort has relied on Government Funding for essential operations and requires investment to refresh the current offering. Currently, the most important item occupying the Board is seeking to engage a private party in the near term to manage and invest in Mt Baw Baw.

In October we called for Expressions of Interest from private operators and investors to secure the long-term viability of the Resort. Our vision through this process is for Mt Baw Baw to be refreshed and become a vibrant all year-round resort while being sensitive to the natural environment and local communities. We expect a private operator to bring their ideas, expertise and capital investment to the resort. This partnership will move us towards the Resort achieving certainty and a sustainable future and for it to deliver recreational and economic benefits for everyone involved.

Over the coming months we will be working with our community and other stakeholders to keep them informed about the process. Upon announcement of our selection of an operator we will call on our stakeholders to participate in the development of a Master Plan for Mt Baw Baw.

I take this opportunity to thank my predecessor Ralph Booth for his valuable contribution to Mt Baw Baw and his stewardship of the Board over his two terms as Chairman. Ralph was very committed and brought with him a wealth of expertise and experience advocating to the various stakeholders to keep development of the Resorts as a priority.

I also welcome Ben Dunlop to the Board.

I wish to express my gratitude to:

— The Minister for Environment and Climate Change, the Hon. Ryan Smith MP for his support of us pursuing a new operating and investment model for the resort;

— The Board for their commitment and continued effort throughout the entire year;

— All our local, regional and State stakeholders for their support and engagement;

— And of course our CEO Stuart Ord and his management team who are positive and customer focused no matter what circumstances present.

With all of us working together I think Mt Baw Baw is ready to prove its true worth to the State of Victoria.

Vicky Papachristos CHAIRPERSON

DECEMBER 2013

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Year in ReviewThe 2012-13 reporting period will be remembered not only as a very difficult winter season caused by low snowfall, but as a time of consolidation of many significant projects across the resort. Management activities focused on initiatives which resulted in improved services to guests, growth in the suite of nature based activities available at the resort and enhancement of our community and stakeholder connections.

I have been particularly proud of the progress made in implementing some sixteen individual projects during the 2012-13 green season in preparation for the 2013 snow season. Management took the initiative to determine areas of the business where smarter or more contemporary practices were warranted, and diligently delivered on the commissioning of the projects. These initiatives included the introduction of the vehicle number plate recognition system for gate entry, the installation of four new microwave dishes for vastly improved internet and other data connectivity and enabling the resort to deliver enhanced customer services all year.

Of course, the extremely poor snow falls recorded at Mt Baw Baw in 2013 re-emphasized the need for a diversification of activities across the entire year. To that end, the progress made on developing the green season nature based activity program driven primarily through an events strategy has been highly encouraging, and the successes achieved during 2013 shall be built upon in the ensuing years. A continued emphasis will be placed on developing the mountain biking, trail running, fly fishing, road cycling and children’s nature based activity markets.

Growing our customer base has been a priority during the year, resulting in a vast improvement to the Resort’s social media presence and web site presentation. Managed by our Marketing and Events Team this is proving extremely valuable in bringing to the public’s attention the array of activities and opportunities available at the resort.

The further development of the resorts Arts & Culture program has resulted in some promising outcomes. The ArchiBawBaw portraiture program, Writer-in-Residence program and eco arts retreats are all leading initiatives developed during the year and which shall be further built upon. The Arts and Culture program has gained regional recognition throughout the arts fraternity, and serves to further establish strong links with the local communities.

In a move to further improve service delivery and achieve cost savings, several operational tasks including transport services for the public to and from the resort, transport of stock and materials, and oversnow services were outsourced to local public sector operators. This has saved on expenditure and further enhanced the sense of partnership between the resort and the local community.

The resort continued to ensure that the environmental values upon which the resort was founded continue to be protected, enhanced and understood. Operational support continued for research teams investigating our rare or threatened species, most notably the Baw Baw Frog, Broad Toothed Rat, Leadbeaters Possum and Baw Baw skink.

The outdoor operations team has again been vigilant in ensuring the elimination of feral animals and noxious weeds from within the Resort.

Unfortunately, the poor snow season was reflected in all aspects of the annual financial statements. Ski field revenues (lifts and lessons) were hardest hit with a 67% shortfall compared with budget. This reflected our inability during the white season to open all lifts on any one day, and very rarely to be able to charge full lift fees.

Accommodation revenues were only down 18% reflecting a propensity for guests to stay at the village despite poor snow levels. Real time monitoring and reporting of financial and other data has been difficult due to outdated software. The resort is taking steps to identify and commission an accounting package to improve this aspect of business activity.

Management recognises the potential positive benefits of the Expression of Interest process currently underway and looks forward to working with the Board to ensure the financial viability of the Resort. Given the proximity of Mt Baw Baw to Melbourne and its unmatched pristine alpine environment, the long term potential of this Resort and surrounding area is unlimited, and the staff willingly accept the challenge of working with Government and the community to fulfil that potential.

The 2012-13 year tested the resolve of the Resort team to produce acceptable resort winter experiences for our guests despite the very poor snow conditions. The team’s dogged determination to make the most of the conditions was outstanding and I would like to thank them for their efforts in trying circumstances. The growth in the green season and Arts and Culture programs augers well for the future of Mt Baw Baw, and I look forward to further improvements to our business model in coming years. The Board, as always, has been extremely supportive of me and the Executive Team, and during the reporting period has given professional guidance and advice to ensure that the refinements to our operating model are heading in the right direction.

Stuart Ord

Chief Executive Officer

CEO’S REPORT

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CEO’s Profile Stuart was appointed CEO for Mt Baw Baw Alpine Resort in January 2012. Prior to his appointment at Mt Baw Baw Stuart was Director of Healthy Parks Healthy People Strategy for Parks Victoria. Previously he had been Regional Manager for Parks Victoria in various parts of Victoria, initially managing the parks system in the

east of the State, followed by the operational responsibility for the urban terrestrial and marine parks in the Melbourne metropolitan area. This has exposed him to the many issues and complexities associated with balancing the needs of tourism related activities in both regional and urban environments.

A forester by training, Stuart spent five years in commercial forestry in the Otway Ranges prior to joining Melbourne Water in the management of water supply catchments and metropolitan recreational parks. He was awarded a Churchill Travelling Fellowship in 1998 giving him the opportunity to study National and Regional Park management and tourism services in Canada and in the USA.

Stuart is a Graduate of the Australian Institute of Company Directors, is a previous judge and mentor with the Victorian Tourism Awards and was, for four years, a judge on the National Tourism Awards. He was recently appointed Chair of Judges for the National Tourism Awards.

The Year In Review

1 FinanceSummary of Financial ResultsDuring the reporting period the Board’s operating result was significantly affected by an extremely poor snow season. The twelve week ‘white season’ generally contributes 75% of total annual revenue compared with 25% for the 40 weeks for the remainder of the year. Total white season visitor numbers for 2012-13 declined 39% compared with the previous year, resulting in an operating revenue reduction of 33%.

Operating expenses were 7.8% less than the previous year despite significant increases in charges for gas and electricity. This was a result of a reduction in all discretionary spending and a focus on minimising non-essential labour throughout the difficult snow season.

The poor snow season required Government support for the reporting period above that detailed in the annual budget forecasts.

The 2013 green season events program resulted in a 21% increase in gross revenue compared with the preceding green season, a pleasing result which augers well for a continuation of the development of nature based activities during 2014.

Revised menu concepts in the food and beverage department improved wastage and consolidated stock levels. The resorts executive chef was encouraged to regularly update the menu offerings.

The Resort’s reputation as a sought after venue for weddings and corporate conferences has continued to grow from the previous year, supported by excellent promotion from the marketing department. This has resulted in an average of one function per month, compared with fewer than four for the green season some years ago.

Increasing the venues seating capacity from 75 to 110 is still critical to capitalize on the growing weddings and functions market which currently cannot be catered for.

Partnerships across the Departments including sponsorships have grown. Major beverage providers continued to increase with support in terms of incentives totaling $30,000 for the year, and corporate sponsors including a local bank and recreational equipment companies added a further $20,000 in sponsorships to the resort.

The average white season gross yield per visitor of $23 compared with a target of $41 per visitor. The poor snow season resulted in a consolidation of the number of venues and lifts open at any one time reducing staffing costs. Food and beverage gross yield per person was $19.56, an increase of 38% since 2011 despite poor to moderate snow seasons.

The Board’s debtor position is considered to be satisfactory and the Board does not see any issues in relation to recovery of these receivables. Detailed financial information about the performance of the Board is contained in the Financial Statements section of this Annual Report.

Subsequent EventsThere have been no events subsequent to the year that significantly impact on operations in future years.

Battle @ Baw Baw

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Financial Review of Operations and Financial ConditionsTABLE A: Five Year Financial Summary

Revenue 2013 2012 2011 2010 2009

Revenue from Operations $2,436,057 $3,680,655 $2,741,911 $3,577,503 $2,597,274

Revenue from Government $4,539,215 $1,423,857 $5,391,500 $2,874,000 $2,339,000

Non-Operational Revenue $5,050 $22,222 $28,991 $16,078 $12,863

Total Revenue $6,980,322 $5,126,734 $8,162,402 $6,467,581 $4,949,137

Operational Expenses $7,389,105 $7,484,640 $7,036,837 $6,585,478 $5,626,749

Net Result Profit/(Loss) -$408,783 -$2,357,906 $1,125,565 -$117,897 -$677,612

Net cash flows from operations -$408,783 -$2,357,906 $1,125,565 $467,430 $306,213

Total Assets $18,980,906 $19,220,870 $21,623,716 $14,669,313 $14,964,056

Total Liabilities $1,324,836 $1,271,017 $1,135,957 $932,096 $1,213,798

Major Changes and/or Factors Affecting PerformanceIn the financial year ending 31 October 2013, the Boards operating result, compared to previous years, was affected by:

— An extremely poor snow season which resulted in a 43% reduction in total accumulated snow depth for the season;

— Green season revenue was up by 21% over the previous year due to an emphasis on developing activities and events during that period;

— Gross revenues excluding Government support payments were down 33% on the previous year, reflecting a 38% drop in visitor numbers and an 18% drop in visitor days compared with the previous year;

— Operating expenses reduced by 7.8% from the previous year despite energy costs rising 14% and labour costs increasing 3%;

— The Board’s cash position during the reporting period was supported by the Government.

2 Enhancing the Visitor Experience and Growing the Resort

Although Mt Baw Baw is a smaller resort in comparison to most other Victorian ski resorts, it will continue to use its competitive advantage of proximity to an expanding Melbourne population and pristine alpine environment to present a wider range of white and green season recreational opportunities than currently exists.

An exciting program of initiatives which address issues including green season development, white season enhancements, and extensive revisions to the resorts marketing programs, particularly social media presence, has been undertaken in the reporting period.

These initiatives have included:

Resort Entry – Alpine Easy Access2013 saw the introduction of a new vehicle recognition system called Alpine Easy Access which was based upon the successful Mt Hotham model of gate entry.

Alpine Easy Access eliminates the frustration of queuing at the old gate entry, enables online payment prior to leaving home, reduces downtime caused by poor IT connectively, eliminates the risk of cash handling at a remote location and has moved the Resort towards a more cashless financial transaction regime. The Alpine Easy Access system includes the ability to purchase at the Resort using mobile iPads. A patrol car with associated vehicle number plate recognition technology attached was also purchased as part of the implementation.

Graph 1 reflects that the majority of visitors to Mt Baw Baw used the new pay on line system for gate entry either from home or using the iPads provided in the Visitors Centre.

GRAPH 1: Alpine Access Resort Entry Purchases 2013

Arts & Culture ProgramThe resort initiated an ongoing Arts and Culture Program to give recognition to the important role that the arts and history can play in a stunning alpine location such as Mt Baw Baw. The program was managed by Group Manager Ms Caroline Hammond who has a degree in Fine Arts and was launched by Victorian Minister for the Arts, The Hon. Heidi Victoria and Regional Arts Victoria Chair, Mr Bruce Esplin in February 2013.

The programs inaugural event was the ArchiBawBaw Portrait Prize, a project which invited local artists to capture the portraits of Mt Baw Baw’s founding pioneers and characters who have significantly contributed to the establishment of Mt Baw Baw Alpine Resort. The ArchiBawBaw will run for 2-3 years until a comprehensive collection of portraits have been acquired.

Other initiatives completed during the period included the appointment of an Arts and Culture Ambassador, the initiation of a Writer in Residence program, an ECO Arts Retreats (Photography and Painting), and the appointment of a resort Honorary Historian, Mr Murray Ferguson from Tanjil Bren.

The Arts and Culture Program has proven to strengthen relationships with local communities, and plans for a travelling sculpture exhibition from Jindivick to visit Mt Baw Baw in 2014 are well in hand.

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Summer Events 2012/13In accordance with the Alpine Resorts Strategic Plan 2012 direction, a new focus on building the green season events program resulted in very encouraging results. Mr Grant Seamer, Group Manager - Marketing & Events, has established an extensive and varied green season events program. Table B indicates a number of the major nature based activity events undertaken, and the visitation and revenue outcomes compared with the previous financial year.

The summer events season produced a 21% increase in gross revenue when compared to the equivalent weekends last season. Visitation also increased 25% compared with the equivalent weekends last season. These increases do not include extra revenues accrued by private lodges through improved accommodation revenues.

Mt Baw Baw is rapidly acquiring a reputation for quality nature based events, and the expectation is that through consistent marketing and promotional efforts of the green season products, visitor numbers and revenues will continue to improve.

Mt Baw Baw had a massive 100% increase in cyclists challenging themselves to the ascent to the resort under the 7 Peaks Challenge Statewide program. This seven kilometre ascent is recogonised as the steepest road cycling section in the Southern Hemipshere. Approximately 400 cyclists had passports stamped and returned to the ARCC, and 592 were recorded at the resort stamping station. This was a significant growth market during the reporting period. The proposed statewide introduction of the 7 Peaks Trail running passport is anticipated with enthusiasm.

Event Event Description VisitationVisitationprevious year *

Revenue comparison **

Fly Fish Baw BawFly fishing weekend in streams surrounding Mt Baw Baw 1207 98 + 1473%

DH1 Open Day Extreme downhill mountain biking 855 61 + 68%

Seasons of Pain / Enduro Combined mountain biking/trail running festival 1216 167 + 318%

VIC Orienteering Orienteering within and surrounding the resort 932 78 + 10%

Baw Baw Sprint Tarmac car rally 604 86 + 371%

Trail Run Festival Weekend festival of various trail running activities 1903 311 + 103%

VIC DH MTB Penultimate round of Victorian downhill mountain biking championship 2582 214 + 167%

Seasons of Pain / Classic Round 2 of Seasons of Pain activities 804 458 + 35%

TABLE B: Individual event visitation and revenue statistics

* visitation from same weekend in the previous year** revenue increase when compared to the same weekend in the previous year

Other initiatives implemented during the period included:

Trail DevelopmentThe Marketing Department led the way in the development of the resort’s trail network with improvements in the sustainability and usability of the trails by mountain bikers and trail runners in particular.

Adventure HubA new initiative was the introduction of an Adventure Hub in the General Store building which served as a focal point for adventure activities in and around the resort. In particular, the hub provided for the:

— distribution of information on adventure activities throughout the resort and the adjacent National Park;

— hiring of an updated range of mountain bikes;

— sales of shuttle passes for our downhill mountain bike customers;

— sale of refreshments and bike spares.

Tackling the mountain bike trails

ArchiBaw Baw portrait collage Seasons of Pain Summer trail running

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Social Media / Online MarketingA new social media strategy was developed during the reporting period to increase awareness of the Resort.

Advanced social media training was provided on a regular basis for all staff members. Staff were also trained to utilise analytics software to generate key reports in order to assess the success of all activities.

The Resort developed and promoted a range of creative, engaging content in-house including written articles, photographs, video, competitions, discounts, reports and announcements. A plan was implemented to connect with suppliers and partners across social media networks (ie Snow

Vic, Kicker Snowboards etc.) which provided a high amount of referral traffic. Visitors directly accessing the website indicated that the resorts online and traditional advertising campaigns were very effective.

Refreshed WebsiteA major initiative at the beginning of this period was to rebuild the resort website as a Wordpress based site which improved overall functionality.

A blog was developed on the website as a Content Hub that is optimised for search and for social sharing. New sections of the website were developed to list accommodation and ski packages for specific target audiences (Couples Getaway, Family Discovery etc.). ‘Book Now’ links were integrated into the site that link to the accommodation listings within RMS booking service.

Night skiingFor the second season running, Mt Baw Baw has provided visitors with night skiing. These very popular night events were featured on Tank Hill, running every available Saturday night giving a rewarding nights skiing for those up for the weekend or just the evening. The reduced price ticket gave beginners another alternative and gave families on the mountain staying at lodges another affordable product to enjoy.

3 Delivering Resort Services and Infrastructure Efficiently and AccountablyManagement continued during 2012-13 to identify projects and initiatives which have the potential to deliver increased revenue streams, improve efficiencies, reduce risks and provide an enhanced level of service to guests in a financially sustainable manner.

The Resort outsourced a number of services during the year to private operators, and this rationalisation of tasks will continue in the New Year. The following initiatives were particularly noteworthy:

Ski Area and Trail GroomingDespite a poor snow season, grooming and ski area trails were maintained by our experienced grooming operators. The total number of grooming nights (eleven) was reflective of minimal opportunities due to marginal snow.

Lift Operations

The resort experienced warmer than expected weather after marginal snow falls in June delaying the start of the winter season for skiers to the second weekend after June opening.

Packages and Group SalesExtra emphasis was placed on developing and promoting the availability of relevant market packages throughout the year with some excellent sales results. Group sales through platforms such as Groupon were particularly successful in improving cash flows especially in the early stages of the Winter season.

MarketingThe Marketing and Events team continued to enact the key elements of the Resort Marketing Strategy 2013-15, and to refine product offers to ensure that they are researched, targeted, vibrant and have the best possible chance of attracting visitors all year round to the Resort.

Through their efforts, the small but effective Marketing and Events team, supported by selected expert contractors has effectively managed to deliver quantifiable growth in resort marketing revenue, significantly improved social media performance, nature based event program growth, packaging of product, sponsorships and development of both white and green season activities and products.

Fly fishing in local streams

Seasons of Pain Summer

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GRAPH 2: Natural snow/snowmaking

0

10

20

30

40

50

60

70

80

90

100

1 5 9 13 17 21 25 29 33 37 41 45 49 53 57 61 65 69 73 77 81 85 89 93 97 101

105

109

113

Cent

imet

res

Days from the start of season 2013

Snowmaking/Natural Snow Depths

Natural Snow Fall

S/M & Nat. Snow Fall

2012 S/M & Nat Snow Fall

Jun. July Sept Jun. July Sept Jun. July Sept Aug

The season produced only four significant snow fall events (refer Graph 2). A cumulative total of 118cm of snow fell during the ski season, compared with 209cm the previous year

Snow farming from around the Resort was performed mostly by hand and with some assistance from mechanical means. This coupled with a well prepared and improved snowmaking system kept the ski area working for a total of 71 days. The resort provided a total of 9,359 skier days for the season against a total of 58,066 visitor days, a significant decrease on season 2012. This would suggest that 16% of visitors to the mountain engaged in lift orientated snow sports which is a 13% decrease on 2012.

GRAPH 3: White Season Visitation Trends

The Resort had 33,057 individual visitors.

GRAPH 4: Visitor Days

They stayed for 60,872 vistor days

SnowmakingSnowmaking operations were utilised well during the season, given the season’s marginal conditions. Summer improvements enhanced the system’s ability to work to tighter temperature parameters, particularly during a year like 2013. The snowmaking system operated for 189 hrs total out of 185 hrs available resulting in 102% efficient operating time. The high level of snowmaking efficiencies is a result of in-house software enhancements (ICT Department), maintenance upgrades, additional equipment and an additional part time staff member.

The in-house development of weather monitoring software along with a recent 165 metre system expansion to the mid summit area improved response times and generated greater snow production. A total of 17,173 m3 of snow was made at a cost of $2.96 per m3.

Maintenance upgrades and equipment purchases including an additional weather station played a key role in our compiled data collection that is now at the forefront of Snow Net’s efficient use and future development.

Year Total Annual Snowfall(cm’s)

Max. Natural Depth(cm’s)

Max Depth in Snowmaking

Areas*(cm’s)

Snow Making Hours

Ski Lift Operating Days

Visitor numbers

White season

(000’s)

Visitor days white season

(000’s)

2013 118 23 33 189 61 33 61

2012 209 58 89 93 97 54 75

2011 89.5 37 45 71 61 37 52

2010 196 104 113 88 89 52 67

2009 136 40 45 80 66 39 53

2008 192 120 120 110 81 44 63

2007 185 115 115 160 91 51 68

2006 58 15 30 300 71 15 20

2005 174 46 75 136 76 27 35

2004 233 84 125 158 103 47 58

TABLE C: Ten Year Overview of Operations Statistics

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Ski SchoolThis season saw a number of return ski instructor staff from the previous season which resulted in a large number of guests requesting our regular international instructors. The fluctuation in snow depths made for a tough season on our international staff who come from working seasons in Canada, France, UK and Austria to experience one of the warmest on record.

Similar to the 2012 season the most popular product on sale this season was the Kids Camp. The Kids Camp was a very popular seller this season but had a few modifications with the separation of ages within kids groups. Kids Camps were separated into two groups: 4-6yrs old and 7-13yrs old. The groups were separated this season to allow older groups to progress faster within lessons and allow the younger children more time on the Magic Carpet to develop their skiing skills. This is a product that will have continued growth within our Ski School.

School groups continue to make up a large portion of the ski lesson business especially through August midweek, and extra effort will be made in 2014 to grow this sector of the market.

Operational MaintenanceThe Resort aims to provide a safe, efficient and professional ski lifting service. The ongoing maintenance inspection program by Snowfield Engineering (three inspections) has provided independent engineering assessment of the ski lifts, standard operating procedures and training. All WorkSafe inspections were passed through the year. Ski Lift maintenance undertaken during the summer program saw the standard scheduled items addressed including structural, foundation, haul rope, sheave assembly and electrical maintenance. Continued slope improvements for more extensive ski area work will be carried out in the 2013-14 summer works period.

Ski Patrol Operations During the twelve week white season period, Ski Patrol was called upon to attend to 112 incidents compared with 209 in 2012 (refer Table D) As a result of the 112 incidents, Ski Patrol had to call upon the services of Ambulance Victoria for transportation and further medical assistance on nine occasions.

TABLE D: Operations Ski Patrol Statistics 2010-2013

2013 2012 2011 2010Incidents 112 209 147 226Visitor Days 60,872 74,790 52,438 67,068Incidents Per 1,000 visitor days 1.83 2.79 2.80 3.30Air Evacuations 0 2 3 0Road Evacuations 9 13 12 13

The small but committed team of Volunteer Patrollers have again been a valuable asset on the weekends and school holidays. The Volunteer Patrollers continue to provide an exceptional level of service in what are sometimes extremely busy periods for the resort.

An alternative means of casuality transport as been established for injured guests for both winter and summer events. A dedicated all-wheel drive emergency vehicle (Polaris Ranger) fitted with a unit suitable for the transportation of casualties and the required medical supplies was purchased by the resort in 2013 and utilised extensively across the winter period. It has proven to be an outstanding success and will be utilised during the green season event program.

After preliminary talks with Ambulance Victoria in 2012 regarding poor ambulance response times to the resort, it was mutually agreed that for 2013 Ambulance Victoria would provide an all-wheel drive ambulance and two Ambulance Community Officers (ACO’s), stationed within the resort for each weekend during the declared snow season. As a result of the above we were able to secure a total of thirteen ACO’s who provided coverage for all required weekends.

The provision of ACO coverage throughout the season has reduced patrol wait times for weekend ambulance transportation and assistance. In addition to the above there were a small number of Career Paramedics who volunteered their time throughout the season to provide midweek coverage to the resort.

The training and assessment program developed by resort management and the Ski Patrol training team in 2011 was further refined for the 2013 snow season. The training and assessment process ensured that all patrollers were able to provide guests with the highest possible standard of care and professionalism.

Analysis of Injury StatisticsUnsurprisingly, the weekends account for 62% of all incidents attended to by ski patrol. This is a rise of 16% over the previous year.

Graph 5 shows the types of injuries sustained by percentage. This graph shows that Sprains and Strains with 35% of injuries are still by far the highest percentage type of injury sustained at Mt Baw Baw. It should also be noted that the dislocation figure has decreased by 6% over the result in 2012. The number of dislocations has now returned to a similar figure to those experienced in the years prior to 2012 where there was a noticeable increase in this type of injury.

Snowsports instructor

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Graph 5: Injuries by Percentage

The 2013 season saw a noticeable reduction in the number of visitors undertaking skiing and snowboard activities with greater emphasis by visitors on sightseeing and snow play. Evidence suggests that snow play/toboggan activity incidents played a greater role in ski patrol attendance than previous years, no doubt as a result of poor skiing and boarding conditions.

Summer Civil/Building ConstructionThe following projects were completed during the summer period:

— Tingaringy Crescent upgrade, including new drainage and pavement works;

— installation of a new radio/internet tower on Tank Hill, designed to vastly improve the reliability and speed of the resort internet connectivity with an offset advantage of lowering resort internet costs;

— installation of refrigerated food receiving containers in car park five. The establishment of a central goods receiving area substantially improved staff efficiency in moving large amounts of dry and perishable stock amongst the four food and beverage outlets during winter;

— construction of the ‘Flashpackers’ accommodation units at the Alpine Hotel to improve the value proposition of the accommodation offer;

— erection of a new south face toboggan fence to give greater toboggan capacity within the resort and reduce safety risks associated with overcrowding;

— installation of new alpine easy access signage (130 signs);

— rehabilitation of the Big Hill access poma area to enable re-commissioning of the lift line;

— installation of new snow guns on Summit lift line including underground piping and a new automatic weather station;

— sale and dismantling of the redundant tube park;

— commissioning of the Alpine Easy Access gate entry system infrastructure.

Central Accommodation Booking Service (CABS)CABS provide a professional and efficient centralised booking system for accommodation options on the resort for guests and owners of private lodges. The CABS service managed 364 of the 592 beds (61%) available for public use at the resort during the period, and this figure is expected to grow during FY ‘14. A total of 697 beds inclusive of staff accommodation exist at the resort.

Midweek bookings throughout the year were again low, with weekend bookings during white season being on average 70% occupancy but affected by the poor snow season. Overall there was a substantial decrease in accommodation income for each month for 2013 white season in comparison to the previous year (refer Graph 6). It was pleasing to note the marked improvement in green season accommodation revenue compared with previous years and resulting from the events program.

GRAPH 6: Accommodation Income by Year

A number of attractive accommodation packages were produced including lift tickets, snowsports lessons and food and beverage options. This initiative increased midweek bookings over the same time period last year.

Guests increasingly require acceptable accommodation that is more focused upon accommodation that is self-contained or with en-suite bathroom facilities. Shared lodge options are still a popular option, especially with a group of families or friends, or by clubs, associations and schools etc.

Information and Communications Technology (ICT)A major upgrade was undertaken to the existing communications tower on Tank Hill involving the mounting of four new microwave dishes. This project was in partnership with a Gippsland Region IT business, and has resulted in much improved internet connection capacity, less down time, higher internet speeds, the capacity to vastly improve WiFi access within the village, and minimisation of internet costs.

The ICT Server room had a major makeover, to ensure network security, stability and equipment longevity. All servers were rebuilt during the period and changes made to licensing agreements to reduce costs further.

The new systems now use Linux operating systems, and will provide a higher standard of network stability. A new set of ICT Policy and Procedures documents was also written.

The SnowCore software application developed in house during the period effortlessly manages the winter season employment program. The software makes employment applications easier for people to submit and for staff to handle. The system automates email responses and follow up.

The ICT department has also developed enhanced smart phone apps for the winter snowmaking activity. A dedicated computer was established to handle extra weather stations, and to save all weather information into a database. A new program has also been developed to enable Snowmakers to have extra mobility whilst working.

The Resort also commissioned a Wi-Fi sales portal during the period, enabling the sale of WiFi access to guests and staff.

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4 Building PartnershipsMt Baw Baw management has actively worked throughout 2013 to strengthen stakeholder relationships and create meaningful partnerships for mutual economic, social and environmental benefit. A particular effort has been made to recognise and respect the important role local communities and special interest groups have in the future development and growth of Mt Baw Baw.

The Board and Resort management contributed to regular and relevant communication with community members and stakeholder groups through the following means:

— the CEO attended Baw Baw Ski Association meetings to ensure clarity of message and openness in communication. A Service Fees Committee chaired by the Chair of the Board was formed to ensure transparency and openness in the negotiations surrounding future service fees;

— the CEO was invited and accepted an invitation to become a member of the Baw Baw Shire Business Development Board, and to lead discussions on the Board’s tourism subcommittee;

— the CEO hosted the annual CEO’s luncheon at Mt Baw Baw to which fifteen Gippsland Region CEO’s attended to collectively discuss Mt Baw Baw and its strategic positioning within the Gippsland landscape;

— the CEO participated as a member of the Australian Alps Landscape Committee to ensure the Baw Baw area receives due recognition at the national level;

— the CEO chaired the Baw Baw Country Local Tourism Association to ensure whole of footprint thinking in relation to tourism initiatives within the Baw Baw Shire area;

— resort staff regularly committed to attending region wide forums covering such issues as emergency and fire management, tourism, infrastructure development and potential partnership programs involving the resort;

— environmental talks were provided throughout the year to schools and organised groups;

— ski instructors visited local primary schools to conduct talks on their profession and passion;

— the Snow Host program was grown, and now provides a valuable voluntary advisory service to guests coming to the resort;

— guest services, in particular chain fitting and hire services and the provision of guest information at the old gate entry were provided through a new partnership with a local business operator. This operator also provided out of hours emergency services to guests if required.

The resort also regularly communicated with the following industry and Government partners:

— Alpine Resorts Coordination Committee;

— Phillip Island Nature Park;

— Australian Ski Areas Association (ASAA);

— Walhalla and Mountain Rivers and Gippsland Gourmet Local Tourism Associations;

— VicRoads

— Department of Environment and Primary Industries (DEPI).

This season Mt Baw Baw’s transport service requirements were outsourced for the white season to a local company, Mountain Top Experience (MTE). MTE is a professional local transport operations service and is able to provide a flexible and knowledgeable service for visitors travelling from the Latrobe Valley to the Resort. The company also provided a freight service for linen pick up/delivery, stock and miscellaneous deliveries. These services revert to resort staff management during the green season. Preliminary estimates indicate that savings of over $25,000 were achieved through the outsourcing exercise.

Mt Baw Baw Management made the decision to outsource Oversnow services to a private operator for the period and utilise a refurbished AxTrack Oversnow machine owned by the Resort. The refurbishment was not completed for the 2013 season, and resort staff operated an Oversnow Luggage Transport Service on a rostered basis.

The Marketing Department developed new business partnerships with quality, specialist suppliers within the adventure media, print and online marketing sectors.

These enabled the small marketing team to attract additional media and public interest in resort events, produce affordable quality print work and develop an online marketing strategy for the Resort.

A strategic partnership with new snowboard brand Kicker Snowboards created the largest sponsorship arrangement the resort has seen in recent times. Skiing guests were presented with the Faceless Feature events hosted each weekend throughout winter (weather permitting) and the redevelopment of ‘The Battle @ Baw Baw’ to incorporate amateur as well as professional riders. These events created an aspirational goal for our Snowsports clients and were very popular throughout the season.

5 Respecting the EnvironmentThe MBBARMB recognises the significance of the fragile alpine environment it manages at Mt Baw Baw, and has taken steps during the reporting period to ensure the continuation of efforts to protect the environmental values which underpin all activities within the resort.

Species Research programThe resort has continued its financial and operational support of a number of research teams who use the resort as a base for intensive field research work on a number of rare or threatened species. These have included:

Baw Baw Frog (Philora frosti) — a continuation of research into this critically endangered species which has suffered massive population declines in the last twenty years. Zoos Victoria has nominated this species as one of its twenty priority species, and recently located an egg mass to raise the species in captivity. Through this work, Zoos Victoria will investigate and refine the husbandry techniques required to raise, maintain and breed Baw Baw Frogs in captivity;

Broad Toothed Rat (Mastacomys fuscus) - Deakin University has continued its research on the level of niche overlap during summer between M. fuscus and the Bush Rat (R. fuscipes) in a subalpine environment, with a focus on habitat use and activity patterns. During this period M. fuscus and R. fuscipes were radio-tracked to examine total ranges, core areas, nest site locations and activity patterns where they coexist at Mt Baw Baw;

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Leadbeaters Possum (Gymnobelideus leadbeateri) was an unintended participant in the BTR trapping research program, and further work is intended by researchers to evaluate the population dynamics of this species within the resort and adjacent alpine areas.

Feral Species Eradication programsManagement continued to deal with feral species eradication within the resort boundaries. This included the removal of feral cats and dogs, and a comprehensive weed spraying program

to continue the weed species reduction program from previous years. Target species included Sword Leaf Rush (Juncus ensifolius), Blackberry (Rubus fruticosus) and Scotch Thistle (Onopordun acanthium).

Land StabilityMt Baw Baw was the recipient of a State Government grant of $125,000 from the Alpine Resorts Land Stability program during the reporting period. This grant will be used for the following programs:

1 Candle Heath Drive Works - erosion mitigation engineering works on internal resort roadways;

2 Assessment of geotechnical sites within the resort;

3 Reinstatement of Big Hill Tube Slide area to natural contours - elimination of ongoing erosion problem.

The resort will continue to apply for grants under the Land Stability Program for works associated with safety and erosion risk within the resort.

Water ManagementMt Baw Baw Alpine Resort Management Board is a ‘water supplier’ as outlined under the Safe Water Drinking Act 2003. During the reporting period, there were no non-compliance matters that had to be addressed.

The resort water supply is constantly monitored, as is the small catchment area from which stream water is harvested for use as domestic water. An uninterrupted power supply (UPS) for the UV treatment plant will be installed early in the FY 2013-14.

KPI Measure 2012/13 Target 2012/13 Result 3 Year Target

NV1. Water Management Meet all DHS requirements

Potable water consumption excluding snowmaking (currently not measured)

100% compliance with Department of Human Services under the Safe Drinking Water Act 2003 requirements for every water quality.

Reduced consumption within the resort per equivalent person

Success

Baseline data not yet available

Full compliance

Complete ascertainment of baseline data

NV2. Solid Waste Management

Reduced waste to landfill Reduce waste to landfill by 2% Success

Waste to landfill reduced by 2.1%

Reduce by 2% annually

TABLE E: Key Performance Indicators (KPIs) - Environmental

Environmental partnership between Zoos Victoria and Mt Baw Baw

Broad Toothed Rat with attached radio tracking collar

Converting to downhill skiing

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6 Broadening Access Opportunities

Mt Baw Baw is committed to providing an environment where people of all abilities feel welcome and wanted as customers and guests. The resort continues to develop programs, activities and initiatives which promote the concept of ‘Inclusive Tourism’, a term that has as an underlying principle that all people, no matter of what ability or disability, have the right to access our magnificent alpine environments.

Adaptive Ski ProgramMt Baw Baw was again fortunate to have a highly trained adaptive ski instructor as a member of staff. Sarah Wilcock, who is from the UK, came to Mt Baw Baw with her unique skills in teaching skiing and a Level 2 certification in adaptive training to concentrate on teaching individuals with disabilities. Sarah’s responsibility for the 2013 season was to organise the products that Snowsports can offer to customers with disabilities. It is intended that this aspect of our ski school instructions will continue to grow.

Support for Disadvantaged GroupsMind Australia again utilised the resources of the resort to introduce adolescents with mental health issues to snow play and skiing. Mind Australia manages the Apollo Youth Residential Program for young people (16-25 year old) who have a background of homelessness and serious mental illness.

Mt Baw Baw Alpine Resort invited students from the Baringa Special School in Moe to visit the mountain and take part in adaptive snow sport lessons. A group of nine students participating in the schools VCE Outdoor and Environmental Studies took part in ski and snowboard lessons. The group of students face various learning challenges from mild intellectual disabilities to autism and ADHD.

Indigenous peoplesMt Baw Baw during the reporting period hosted a number of indigenous groups representing a cross section of traditional owner groups from across Gippsland. Of particular note was the visit by the Ramahyuck District Aboriginal Corporation who held a training conference at the resort for 130 guests.

Also making use of the resorts conference facilities were the

Parks Victoria Elders Conference, the Gippsland Leadership training program at which representatives of the Gunai Kurnai spoke, and an Elders presentation at a conference forum for Regional Development Victoria staff.

The 2013 season showed a greater variety in ethnic background visitors using the ski lifts and taking part in many of the resort events. It has become more apparent as each year passes that more emphasis on ethnic diversity in our employment should be a part of the resort staff balance as we move forward.

7 Regulatory ReformMt Baw Baw Alpine Resort is committed to introducing a range of regulatory reforms, in particular the investigation of alternative business and funding models to ensure the financial sustainability of the resort. Implementation of master planning, emergency and fire planning and recognition of revised bushfire and native vegetation overlay provisions shall be a focal point of future activities at the resort.

LeasingThe Alpine Standard Lease is used as the standard document when negotiating any new lease within the resort. New leases are able to be registered with the Office of Titles in recognition by financial institutions of a secure title. Six applications for renewal of existing leases have been submitted during the reporting period.

An analysis of occupancy data continues to reinforce the requirement for a mix of on mountain en-suited lodge or cabin style accommodation in addition to the normal family friendly affordable shared room lodge type accommodation. Future lease renewal negotiations shall recognise this aspect in the business planning process for lease renewal.

Statutory Land Use Planning The Minister for Planning is the responsible authority for the administration of the Alpine Resorts Planning Scheme as it applies to the resort in conjunction with the Planning and Environment Act 1987.

No requests were received during the reporting period for permission to make changes to a private lodge in accordance with the Urban Design Framework.

8 Governance and ComplianceThe Mt Baw Baw Alpine Resort Management Board The Board was established under the Alpine Resorts (Management) Act 1997. The responsible Minister for the 2012/13 reporting period was The Hon Ryan Smith MP, Minister for Environment and Primary Industries.

Board Functions The functions of the Board as set out under Section 38 as referred to in the 2004 amendments to the Alpine Resorts (Management) Act 1997 are:

Adaptive ski instructing

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aa) to plan for the development, promotion, management and use of the resort in accordance with the object of this Act;

(ab) to –

(i) develop and promote; or

(ii) facilitate the development or the promotion by others of the use of the resort in accordance with the object of this Act;

(ac) to manage the Alpine Resort in accordance with the object of this Act;

(ad) to contribute to the development of the Alpine Resorts Strategic Plan and other strategic planning for Alpine Resorts as a whole;

(ae) to undertake research into Alpine Resort issues;

(af) to contribute to and support the operation of the Alpine Resorts Co-ordinating Council;

(ag) to prepare and implement a Strategic Management Plan for each such Resort;

(ah) to expend or apply revenue of the Board in accordance with a direction of the Minister under section 36(1A);

a) to act as a committee of management of any Crown land deemed to be permanently reserved under the Crown Land (Reserves) Act 1978 in the resort;

b) to contribute, together with Tourism Victoria, established under the Tourism Victoria Act 1992, and the Council, to the overall promotion of Alpine Resorts;

c) to develop a tourism and marketing strategy for and to promote the resort and to collect and expend voluntary contributions from commercial undertakings in the resort for this purpose;

d) to provide services in the nature of –

(i) garbage disposal;

(ii) water supply;

(iii) gas;

(iv) drainage;

(v) sewerage;

(vi) electricity;

(vii) roads;

(viii) fire protection;

(ix) snowmaking;

(x) transport;

for the resort and to charge contributions for the provision of those services;

e) repealed

f) to collect fees prescribed by the regulations for the resort;

g) to attract investment for the improvement of the resort; and

h) to carry out any other function conferred on the Board by this or any other Act.

A Board must perform its functions in an environmentally sustainable way.

The Board conducts its business with transparency and accountability in accordance with statutory requirements and Government policy. During the reporting period, the Board has:

— Achieved consistent compliance with corporate and government standards and ensured universal awareness by staff of governance policies;

— Managed its affairs with financial probity; and

— Met the requirements of Government policy and relevant legislation.

Board Appointments Members of the Board are appointed by the Minister for Environment and Primary Industries.

Appointments to the Board during the reporting period November 1, 2012 to October 31, 2013 were:

Ralph Booth: Chair from April 29, 2010 to April 29, 2013

Vicky Papachristos: Deputy Chair from April 29, 2010 to April 2013

Chair April 2013 to October 31 2013

Randall Cohen: Board Member from April 29, 2010 to April 2013 Deputy Chair April 2013 to 31 October 2013

Wally Tabensky: Board Member from April 29, 2010 to October 31, 2013

Jacqueline McLeod: Board Member from October 28, 2011 to October 31, 2013

Ben Dunlop: Board member from June 21, 2013 to October 31, 2013

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#140 23/11/12

#140b 12/12/13

#141 28/02/13

#142 24/04/13

#143 21/06/13

#145 23/8/13

#14725/10/13

Number of meetings attended

Ralph Booth A - - - - 2/7

Vicky Papachristos A 6/7

Wally Tabensky 7/7

Randall Cohen 7/7

Jacqueline McLeod 7/7

Ben Dunlop - - - - 3/7

TABLE F: Board Meeting Attendance Register

(Tick = Attended) (A = Apology) Ralph Booth resigned as Chair in April 2013Ben Dunlop commenced as a Board Member in June 2013NB - in addition to formal Board meetings, the Board met on five occasions via phone conferencing.

Board Member Profiles

Vicky Papachristos – ChairVicky has spent over 20 years as a management and marketing executive with major corporations in Australia and the USA. Vicky’s work has spanned Petrochemicals, Banking, Sport, IT & Retailing holding senior roles in Shell, Westpac, Visa, Myer, the Sydney Olympics and Paralympics as well as an IT start-up in the US.

Vicky’s expertise is in strategy and marketing responsible for the design, development and launch of several major customer facing business initiatives. Vicky also has extensive expertise in setting up new and enhancing existing business operations.

In 2006 Vicky formed Currant Marketing – an independent consultancy in the fields of marketing, loyalty and customer strategy specialising in retail and consumer products.

Vicky also serves on two other Boards: She is an Independent Director of EPAL - EFTPOS Payment Australia Limited, Australia’s most widely used domestic debit card system. Vicky is also a Director of GMHBA Private Health Insurance - a leading regional Private Health Insurer head-quartered in Geelong.

Vicky is a keen skier and road cyclist and holds a Chemical Engineering degree as well as an MBA from the AGSM. She is a member of the Australian Institute of Company Directors.

Randall Cohen – Deputy ChairRandall has a wealth of professional experience in commercial and legal project work for the public sector, the private sector and at the interface between the public and private sectors. Randall has assisted a broad array of Victorian Government Departments in delivery of major projects with emphasis on infrastructure, resources, energy, risk management, litigation, and dispute resolution. Randall also has extensive experience in leading projects for major private sector companies in Victoria’s energy industry. Since 1999, Randall has provided niche consulting services. Prior to that Randall worked as General Counsel and Regulatory Manager for APA GASNet Pty Ltd, as Corporate Solicitor for Alcoa of Australia Ltd, and as a solicitor with major law firm, Mallesons Stephen Jacques.

Wally Tabensky Wally holds professional engineering qualifications and has vast experience in engineering and local government. He has been employed with various local governments, commencing with the City of Springvale in 1968 and concluding his working career upon retiring from his position as Director, Infrastructure and Environment, at the Baw Baw Shire in 2008. Wally has studied overseas, and has been a member of the Mt Baw Baw Alpine Resort Management Board (12 years) and previous Management Committee at Mt Baw Baw since 1989.

Jacqueline McLeod Jacqui is an environmental scientist and manager with over 25 years’ experience in environmental policy and strategy development, environmental impact assessment and regulatory and advisory services in state and local government and the private sector in Victoria and New South Wales. Jacqui’s experience includes extensive stakeholder engagement and facilitation and a track record of influencing at a range of levels, through both formal statutory processes of community consultation and informal engagement at high levels of government and industry. As a manager, Jacqui has held a number of senior level positions over the last 15 years, involving leadership of staff and multi-disciplinary teams, business management, business improvement, organisational change and business development. Jacqui also has broad experience as a project manager, developing project plans and costings, assigning team roles, reviewing outputs and overseeing delivery to time and budget. Jacqui is a long time downhill skier and has skied most of the resorts in Victoria and NSW since being a teenager, including having spent a season working as a ticket seller at Perisher-Smiggins.

Mr Ben DunlopBen Dunlop was appointed to the Board in June 2013. Ben is a fully qualified Certified Practising Accountant (CPA), with in excess of seventeen years’ experience in the accounting / finance sector, including four years as Financial Accountant at Hawthorn Football Club.

Ben has experience in a range of industry sectors including taxation, business services, health sector, information technology and sport and leisure, along with experience in the United Kingdom.

Personally, Ben was raised on a farm in Western Victoria and he and his partner have two young boys.

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Board CommitteesThe Mt Baw Baw Alpine Resort Management Board committees are listed below, and provided advice to Board throughout the reporting period:

Audit and Risk Committee Vicky Papachristos: Chair of Committee November 2012 to April 2013

Randall Cohen: Member November 2012 to April 2013, Chair April 2013 to October 2013

Wally Tabensky: Member

Simon Mahony: Independent Member September 2012 to October 2013

Marketing CommitteeVicky Papachristos ChairRandel Cohen Member

Remuneration Committee Ralph Booth: Chair of Committee November 2012-April 2013

Vicky Papachristos Chair of Committee April 2013-October 2013

Wally Tabensky: Member

Consultative CommitteesService Fees CommitteeVicky Papachristos ChairTom Bauer CommitteeGlenn Miller CommitteeJohn Jenkins Committee

Des Russell Committee

Environment CommitteeJacqui McLeod Chair

Greg Hollis Committee

Andy Gillham Committee

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Risk ManagementThe Board understands that there is no such thing as a risk free environment, particularly in the difficult working environment of an alpine resort. The Audit & Risk Committee met on six occasions during the reporting period, and focused upon excellence in risk management using logical and systematic processes.

The Audit & Risk Committee has undertaken an extensive review of the organisations risk management framework during the reporting year. The review has built upon information gained during the previous years extensive workshops targeting Board, management and staff of risks associated with operating the resort; levels of risk, options for mitigation of risk and prioritisation of actions to manage risk.

The MBBAR Risk Management profile matrix has been extensively modified to ensure all known risks and their consequences are detailed, and mitigation actions leading to control measures detailed.

The Board now has a comprehensive matrix of Inherent Risk vs Control measures to use as a tool to identify priority areas of risk which the Board and Management need to focus upon.

Key areas of risk identified and acted upon during the reporting period have included fire and emergency management, fraud and theft mitigation, alcohol and drug abuse, financial management, asset management and information technology reliability.

Risk Management Attestation To ensure that the risks are being managed in a consistent manner, public sector entities are required to attest in annual reports that:

— they have in place risk management processes consistent with the Australian/New Zealand Risk Management Standard;

— these processes are effective in controlling the risk to a satisfactory level; and

— a responsible body or audit committee verifies that view. The Resort Management Board has a Risk Management Policy and Strategy in place that is reviewed and updated annually.

— I, Vicky Papachristos, certify that the Mt Baw Baw Alpine Resort Management Board has risk management processes in place consistent with the Australian/New Zealand Risk Management Standard and an internal control system is in place that enables the executive to understand, manage and satisfactorily control risk exposures. The Board’s Audit & Risk Management Committee verifies this assurance and that the risk profile of the Mt Baw Baw Alpine Resort Management Board has been critically reviewed within the last twelve months.

Vicky Papachristos ChairMt Baw Baw Alpine Resort Management Board

Gifts, Benefits and Hospitality Attestation I, Stuart Ord, certify that:

Mt Baw Baw Alpine Resort has policies and procedures in place that are consistent with the minimum requirements and accountabilities outlined in the Gifts, Benefits and Hospitality Policy Framework issued by the Public Sector Standards Commissioner;

— Staff are informed about these gifts, benefits and hospitality policies and procedures; and

— The Audit & Risk Committee reviews the operation of the policies and procedures at least once a year to ensure transparent reporting of accepted gifts, benefits and hospitality.

Stuart Ord CEOMt Baw Baw Alpine Resort

Insurance AttestationMt Baw Baw Alpine Resort is insured with the Victorian Management Insurance Agency under the Victorian Managed Insurance Authority Act 1996 (VMIA Act) apart from the vehicle fleet which is insured through QBE Insurance Australia.

I, Stuart Ord certify that the Mt Baw Baw Alpine Resort has complied with Ministerial Direction 4.5.5.1- Insurance

Stuart Ord CEOMt Baw Baw Alpine Resort

Advertising expenditureGovernment policy requires the disclosure of advertising for each government advertising campaign with total media buy of $150,000 or greater (exclusive of GST). In 2012–13, Mt Baw Baw Alpine Resort Management Board did not incur expenditure for advertising campaigns of $150,000 or greater during the reporting period.

Freedom of InformationThe Mt Baw Baw Alpine Resort Management Board is considered to be a Government Agency under the terms of the Freedom of Information Act 1982. The Act allows the public a right of access to documents held by the Board. Freedom of Information requests are made in writing describing the documents requested.

A decision to release information is made by the Resorts Accountable Officer, Mr Stuart Ord. In the reporting period (ending 31 October 2013) one request for information was received. This request was later withdrawn by the applicant. During the reporting period, one FOI request commenced in 2011-12 was referred to VCAT for a directions hearing. The applicant subsequently withdrew the application.

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Written requests, as detailed in Section 17 of the Freedom of Information Act 1982 should be forwarded with the prescribed fee to:Mr Stuart OrdFreedom of Information OfficerMt Baw Baw Alpine ResortPO Box 117RAWSON VIC 3825

InformationThe Board held and maintained the following categories of documents:

— correspondence files;

— minutes of the various meetings held by the Mt Baw Baw Alpine Resort Management Board;

— technical reports and statistical information on Mt Baw Baw Alpine Resort management matters;

— leasehold documents related to Mt Baw Baw Alpine Resort sites;

— plans, charts and other data covering Mt Baw Baw Alpine Resort operations and planning.

Reports and general information related to the Board are available for inspection at the office of the Mt Baw Baw Alpine Resort Management Board. The Board’s website is a source of considerable information. The fee for any FOI application is $27.50. Other enquiries may be sent to The Chief Executive Officer, as the Authorised Officer of Mt Baw Baw Alpine Resort, PO Box 117, Rawson, 3825, stating as clearly as possible the nature of the request. Once the Annual Report is tabled in Parliament, it will then be placed on the Board’s Website.

National Competition Policy The Board adheres to the principles of the National Competition Policy (NCP) to ensure that any business competition with private entities takes place in an environment where the Board has no competitive advantage. The Board reviewed all aspects of its business during the reporting period to ensure compliance with the NCP.

Major Contracts The Board undertook several funded projects which required contracts. These contracts/expenditure have been reviewed within Auditor General processes. Mt Baw Baw has not entered into any contracts that exceed $10m.

Victorian Industry Participation Policy Act 2003 This Act requires Public Bodies and Departments to report on the implementation of the Victorian Industry Participation Policy (VIPP).

Departments and public bodies are required to apply VIPP in all tenders over $3 million in metropolitan Melbourne and $1 million in regional Victoria. The resort has not commenced or completed any contracts during 2012-13 to which VIPP applied.

Major External Reviews Mt Baw Baw Alpine Resort Management Board has not participated in any major external reviews during the reporting period.

Overseas Visits Undertaken No overseas study visits occurred during the reporting period.

Details of ConsultanciesTABLE G: Details of Consultancies over $10,000

Drive Climb Fly Pty Ltd Marketing Services $83,493

Maurice Copsey (Snowfield Engineering)

Engineering Services $69,344

Viatek ICT Pty Ltd IT Services $19,763

The Creative Bunch Marketing Services $26,147

Business Insight Group Grant Management $20,110

Touchstone Australasia Pty Ltd Project Management $152,568

Lion Capital Advisory Pty Ltd Financial Advice $121,821

Adventure Types Pty Ltd Recreational services $52,008

Ernst and Young Planning services $22,650

Details of Consultancies under $10,000 – During the year, the resort engaged eight consultancies for contracts under $10,000 with total aggregate fees of $34,761

Protected Disclosures Act 2012Compliance with the Protected Disclosures Act 2012 (& the Whistleblowers Protection Act 2001 (repealed))

The Whistleblowers Protection Act 2001 (Whistleblowers Act) was repealed and replaced with the Protected Disclosure Act 2012 (PD Act) on 10 February 2013. As the change of legislation occurred midway through the 2012-13 financial year, this disclosure complies with the requirements of the PD Act and the Whistleblowers Act, for each of the relevant time periods.

Compliance with the Protected Disclosures Act 2012

The PD Act was part of a package of integrity reforms introduced by the Victorian Government, which also established the Independent Broad-based Anti-corruption Commission (IBAC). The PD Act enables people to make disclosures about improper conduct within the public sector without fear of reprisal. It aims to ensure openness and accountability by encouraging people to make disclosures and protecting them when they do.

What is a ‘protected disclosure’?

A protected disclosure is a complaint of corrupt or improper conduct by a public officer or a public body. Mt Baw Baw Alpine Resort is a ‘public body’ for the purposes of the Act.

What is ‘improper or corrupt conduct’?

Improper or corrupt conduct involves substantial:

— mismanagement of public resources; or

— risk to public health or safety or the environment; or

— corruption.

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The conduct must be criminal in nature or a matter for which an officer could be dismissed.

How do I make a ‘Protected Disclosure’?You can make a protected disclosure about Mt Baw Baw Alpine Resort or its board members, officers or employees by contacting DEPI or IBAC on the contact details provided below. Please note that Mt Baw Baw Alpine Resort is not able to receive protected disclosures.

How can I access Mt Baw Baw Alpine Resort’s procedures for the protection of persons from detrimental action?Mt Baw Baw Alpine Resort has established procedures for the protection of persons from detrimental action in reprisal for making a protected disclosure about Mt Baw Baw Alpine Resort or its employees. You can access Mt Baw Baw Alpine Resort’s procedures at its office.

ContactsDepartment of Environment and Primary Industries (DEPI)Jennifer Berensen, Senior Advisor, Privacy & OmbudsmanDepartment of Environment and Primary IndustriesAddress: PO Box 500, East Melbourne Vic 3002Ph: 9637 8697Website: www.depi.vic.gov.au

Independent Broad-Based Anti-Corruption Commission (IBAC) VictoriaAddress: Level 1, North Tower, 459 Collins Street, Melbourne Victoria 3001.Mail: IBAC, GPO Box 24234, Melbourne Victoria 3000Internet: www.ibac.vic.gov.auPhone: 1300 735 135Email: see the website above for the secure email disclosure process, which also provides for anonymousdisclosures.

TABLE H: Disclosures under the Whistleblowers Protection Act 2001 (up to 9 February 2013)

No of DisclosuresTypes of

Disclosures

Disclosures made to Mt Baw Baw ARMB during 2012-2013 Nil -

Disclosures referred by Mt Baw Baw ARMB to the Ombudsman for determination as to whether they are of public interest

Nil -

Disclosed matters referred to Mt Baw Baw ARMB by the Ombudsman Nil -

Disclosed matters referred by Mt Baw Baw ARMB to the Ombudsman for investigation Nil -

Investigations of disclosed matters taken over by the Ombudsman from Mt Baw Baw ARMB Nil -

Requests made under Section 74 to the Ombudsman to investigate disclosed matters Nil -

Disclosed matters that Mt Baw Baw has declined to investigate Nil -

Disclosed matters that were substantiated upon investigation and the action taken on completion of the investigation

Nil -

Recommendations made by the Ombudsmen that relate to Mt Baw Baw ARMB Nil -

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Reporting Requirements under the Financial Management Act 1994

Declaration of Pecuniary Interests Declarations of Pecuniary Interests are recorded both in Audit processes and in the minutes of the Board’s monthly meetings. The declarations illustrate details relating to Members of the Board and Executive Staff.

Details of Shares held in Statutory Authority or Subsidiary There is no record of any shares of this nature being held by Board members or staff members.

Publications Produced/Reviewed 1 Mt Baw Baw Alpine Resort Management Board 2012 Annual Report;

2 Mt Baw Baw Alpine Resort Management Board 2012-2015 Corporate Plan;

3 Mt Baw Baw Alpine Resort Management Board Strategic Management Plan 2011-2016;

4 Mt Baw Baw Alpine Resort Strategic Marketing Plan 2012.

There have been no other reports produced during the reporting period of this report.

Office based Environmental ImpactsThe resort has ensured that all photocopiers are set to black and white and double sided as standard defaults. Photocopier paper is recycled where possible, and one sided used paper reused for office scrap writing paper.

A target reduction of an annual 10% in energy usage within the office environment has been set. Lighting within the office is progressively being converted to more energy efficient units. Winter heating costs are monitored and alterations to the hydronic office system made as appropriate.

Purchasing

The Board, as an independent manager of and investor in the Resort’s assets, purchases services and goods, in line with the Victorian Government’s Purchasing Guidelines and Victorian Industry Participation Policy disclosures. In doing this, the Board applies the following principles:

— Value for Money;

— Open and Fair competition;

— Accountability;

— Full Cost Recovery.

Building Services The Mt Baw Baw Municipal Building Surveyor (MBS) at Mt Baw Baw is John Austin. Inspections of lodges were therefore principally undertaken by a CFA officer or by John Austin for action. Most clubs are still proactive and able to demonstrate compliance relating to the testing of fire safety equipment at the commencement of the ski season.

Building-related risks have been identified and reduced, and the building owners and managers are far more aware of their responsibilities and options to achieve compliance with maintenance of essential services. Again the year was free of any major structural fire incidents and education of owners and safety for occupants was improved.

Major Public Relations and Promotional Activities During the reporting period the Board continued an Agreement with Tourism Victoria to implement a promotional program for Victoria’s Alpine Resorts. This program was co-ordinated through the Board for Alpine Resorts Tourism (BART). The Board contributed $10,000 to this program. During the reporting period, the Board implemented and participated in a number of marketing initiatives including:

— participation in Tourism Victoria’s Alpine Resorts promotional campaigns;

— attendance at Board for Alpine Resort Tourism (BART) Ski Marketing Committee meetings;

— attendance at Tourism/Trade Shows;

— promotional activities with regional tourism groups;

— membership of Walhalla & Mountain Rivers and Gippsland Gourmet Local Tourism Associations;

— foundation membership of Baw Baw Alpine Local Tourism Association;

— television, print and radio advertising in Gippsland and Melbourne;

— sponsorship and support of events held at Mt Baw Baw Alpine Resort;

— distribution of information/newsletters to stakeholders;

— participation in regional and state snow reporting programs;

— operation of a web site (www.mountbawbaw.com.au) with links to a number of Resort, Tourism and Ski Industry related pages.

Fair Trading Act 1999 From 1 June 2004 new regulations under the Fair Trading Act 1999 came into effect.

The Fair Trading (Recreational Services) Regulations 2004 make it possible for suppliers of recreational services to obtain consent from customers to waive their rights under the Act, including their right to take legal action against the supplier if they die or are injured while using the services.

In compliance with the Fair Trading (Recreational Services) Regulation 2004 Mt Baw Baw Alpine Resort Management installed warning signs at both ticket gates to alert visitors to the fact that they are being asked to agree to waive their rights under the Fair Trading Act 1999.

Information Privacy The Information Privacy Act 2000 deals with the manner in which public and private sector organisations may record, use, store and disclose information collected from individuals. The Board is committed to upholding the Privacy Principles set out in the legislation.

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Research and Development The Board continued to support the ongoing research into the Baw Baw Frog being conducted by the Department of Sustainability and Environment and the Broad-toothed Rat being studied by Deakin University.

Building Act 1993 In addition to risk management matters (detailed in the CEO Report), the Board has engaged JRMA Building Services Pty Ltd to provide municipal building surveyor, general building maintenance and fire safety compliance advice to the Board. This consultancy enables the Board to fulfil its obligations in relation to the Building Act 1993.

Statutory Reporting

Corporate Plan Section 53 of the Alpine Resorts (Management) Act 1997 requires the Board to prepare an annual Corporate Plan. The Corporate Plan must be approved by the Minister for Environment and Climate Change each year.

The Corporate Plan must include:

a) A statement of corporate intent in accordance with Section 54 of the Act;

b) A Business Plan containing the information required by the Minister;

c) Estimates of the receipts and expenditure of the Board for the period of the Plan.

The Business Plan is also developed on an annual basis to specify the annual objectives of the Board and to measure the performance of the organisation against the objectives identified within the Corporate Plan. The 2013-2016 Corporate Plan was submitted to Government in December 2013.

Annual Report Section 45 of the Financial Management Act 1994 requires the Board to prepare an Annual Report. The Annual Report must be approved by the Minister each year.

The Annual Report must include:

a) Reports of operations and financial statements of those departments or public bodies, or both;

b) A report of operations and financial statements consolidating information provided by those departments or public bodies, or both.

The 2011-2012 Annual Report was submitted to the Minister in January 2013. The 2012/2013 Annual Report will be submitted to the Minister in January 2014.

Workforce and Organisational DevelopmentMt Baw Baw Alpine Resort has ensured that all Public sector employment principles as stated in the Code of Conduct for Victorian Public Sector Employees have been addressed ensuring that:

a) employment decisions are based on merit;

b) public sector employees are treated fairly and reasonably;

c) equal employment opportunity is provided; and human rights as set out in the Charter of Human Rights and Responsibilities are upheld; and

d) public sector employees have a reasonable avenue of redress against unfair or unreasonable treatment.

Occupational Health and SafetyMt Baw Baw is totally committed to establishing a healthy and safe work environment for our staff, contractors and visitors. All activities throughout the resort are subjected to Occupational Health & Safety (OH&S) reviews to ensure we are not placing staff or visitors at risk and to:

— encourage individuals to practice work safety by providing information, instruction and training;

— provide safe plant and systems of work;

— ensure compliance with legislative requirements and current industry standards.

The resort ensured that the OH&S Representative underwent training during 2013 to ensure maintenance of skills and knowledge with respect to OH&S. Management continued to ensure Departmental OH&S meetings were conducted regularly, minuted and action items implemented. The Executive Team met on twenty occasions during the year at which time OH&S was a standard agenda item. All incidents are investigated to ensure appropriate responses to any issue and changes implemented as required.

The majority of Staff at the Resort now have first aid training.

Equal Employment Opportunity The Board is an equal opportunity employer and all appointments and promotions are merit based. The Staff Development and Training program continued this year, again identifying areas for development and enhancement of skill levels. All staff are appointed through a process which responds to merit and equity.

Industrial Relations There were no industrial disputes during the reporting period. A new Enterprise Agreement was being developed during the reporting period, but was not finalised during the reporting year.

Workforce Data Management and Staff The day to day running of the organisation is undertaken by the Chief Executive Officer and a small year round workforce, which is supplemented by seasonal staff and volunteer ski patrollers. All staff are employed under a Mt Baw Baw Resort Management Enterprise Agreement. Key Staffing appointments made during the reporting period were:

Chief Executive Officer – Mr Stuart Ord appointed as the permanent CEO;

Group Manager – Ms Caroline Hammond confirmed as permanent Group Manager - Indoor Operations and Manager of the Arts and Culture program.

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Training and Development Mt Baw Baw Alpine Resort Management Board encourages the training and development of our staff through work related training and external study.

During the reporting year management has continued to improve staff skills through in-house training and using external providers in gaining Diplomas across a number of different disciplines. Training programs undertaken included;

— Responsible Service of Alcohol (RSA);

— Authorised Officer;

— Excavator;

— Chainsaw;

— Drug and Alcohol;

— OH&S;

— Safe Food Handling;

— RMS (Accommodation Database);

— RTP (Resort Transactions Database);

— Alpine driver training.

Staff Induction Program The staff induction program is a compulsory program that is attended by all new employees and provides an overall induction into employment with Mt Baw Baw Alpine Resort Management Board.

TABLE I: Staffing Profile during 2012/13 & 2011/12

2012/13 2011/12

Male Female Total Male Female TotalSenior management

5 2 7 5 2 7

Other full time staff

8 7 15 11 7 18

Winter season staff

51 37 88 54 39 93

Total 64 46 110 70 48 118

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KPI Key Performance Indicator Measurement of Success Outcome

2012/13 2011/12

1 Positive promotion of the Resort Net promoter score

(Woolcott survey)

22 11

2 Total Visitation to Mt Baw Baw White Season

Visitors and visitor days increased 33,000 visitors

61,000 visitor days

54,000 visitors

75,000 visitor days

3 Maintain / increase the number of public beds available through a Central Booking Service

Number of beds on Central Accommodation Booking Service

364 beds 305 beds

4 Customer Service satisfaction white season Woolcott Survey Satisfaction Index 3.7 Satisfaction Index 3.6

5 Green season development No. of events 12 7

6 Environmental Quality

Water Supply Quality

Waste management

% water samples meeting DHS guidelines

% total waste recycled

100%

32%

100%

30%

7 Resort Development New lease applications 6 1

8 Skier days No. skier days 9,359 22,978

9 Revenue from operations Total revenue $2,436,000 $3,703,000

10 Ski field Incidents Ski Incidents per 1,000 visitor days 1.83 2.79

TABLE J: Mt Baw Baw Alpine Resort Management Board Objectives (KPIs)

Relevant Information — The following information is retained by the Resort’s

Accountable Officer (Stuart Ord) and is available to the relevant Minister, Members of Parliament and the public on request:

— Statement declaring pecuniary interests completed by all relevant officers and Board members;

— Details of shares held by a senior officer as nominee or held beneficially in a statutory authority or subsidiary;

— Details of publications produced and where available;

— Details of changes in prices, fees, charges, rates and levies;

— Details of any major external reviews;

— Details of major research and development activities;

— Details of overseas visits;

— Details of major promotional, public relations and marketing activities;

— Details of assessments and measures undertaken to improve occupational health and safety of employees;

— General statement on industrial relations and details of time lost through industrial accidents and disputes;

— Major committees sponsored purposes of committees and achievements;

— Details of industrial accidents and disputes;

Key Objectives for MBBARMB are set down in the Strategic Management Plan 2011-2016. Table J lists MBBARMB’s Objectives and Priorities within the framework of the Alpine Resorts Strategic Plan 2012.

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TABLE K: Objectives and Priorities of the Corporate Plan

Objectives based on the Alpine Resorts 2012 Strategy

MBBARMB Response

1 Enhancing the visitor experience and developing resorts

Management shall continue to refine the product offer based upon:

• customer satisfaction reports

• visitor feedback

• in depth understanding of visitor profiles and needs through available research and tourism data

We shall use our competitive advantage of proximity to large markets and pristine alpine environment to further develop nature based opportunities throughout the year.

We shall provide the opportunity for a long term private operator to become managers of the resort to assist in building the resort to be a thriving and vibrant, financially sustainable, visitor destination.

2 Delivering resort services and infrastructure efficiently and accountably

The Mt Baw Baw Transformation project aims to achieve long-term financial independence for the Resort through the provision of three enabling infrastructure projects. These are:

• installing underground power to ensure a reliable and cost effective power supply

• sealing of the South Face Road to provide safe and efficient road access

• upgrading car parking, internal service roads and visitor facilities for improved usability for all Visitors and Staff

MBBARMB will continue to ensure best practice management of all assets within financial capabilities and according to agreed KPI’s.

3 Building partnerships MBBARMB has embarked upon a major project to encourage private partnership operation at the resort. This is being done through an open and transparent EOI process.

At a local level the MBBAR actively partners with regional agencies and other economic lobby groups to ensure the interest of the Resort are uppermost in Regional thinking.

The Resort continues to engage with the Traditional Owners of the land in a meaningful and respectful way in terms of strategic and management planning, decision making and natural resource management.

MBBARMB has actively sought to partner with other Regional Tourism Attractions and agencies to generate increased visitation for all parties. Recent initiatives include Phillip Island Nature Park, Walhalla, Destination Gippsland and the Neerim South community.

MBBARMB has entered discussions with GippsTAFE to establish “on-mountain” educational product offerings, utilising the accommodation and meeting facilities already available.

MBBARMB works to maintain a high level of engagement with the local communities. Close links are kept with local tourism operators through MBBARMB’s Chairmanship of the Baw Baw Country Local Tourism Association.

4 Respecting the alpine environment Mt Baw Baw Alpine Resort is located within a rich sub-alpine ecosystem, supporting many rare and endangered species and sensitive ecological communities. The well-being of this biodiversity is intrinsic to that of the Resort, and protecting it from harm must be a priority in everything the MBBARMB undertakes.

Pivotal to this aim is the reshaping of the Resorts Environmental Management Plan during 2014.

The Resort shall continue to work in association with Universities and other research organisations to further their work on understanding the sensitivities to endemic and threatened species particularly during times of climate change eg Baw Baw Frog, Leadbeaters Possum, Broad Toothed Rat.

MBBARMB will preserve and enhance the natural environment – and tell its story - so that it can be shared with and valued by visitors in a respectful and sustainable way.

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5 Broadening access opportunities MBBAR positions itself as ‘the accessible and affordable mountain’.

It will work to better understand the needs of visitors from diverse backgrounds and with varied abilities and identify improvements to facilities and services where practicable.

Research will be commissioned to better understand the drivers of our multicultural guests to ensure that there are no blockages to their participation in the alpine Resort environment activities.

Significant projects during FY14 will focus on improving access for people with disabilities throughout the Resort, and using the lease renewal process to achieve that end wherever possible

A number of projects are being consideredare being considered that provide enhanced access to the resort. This includes the development of a chairlift to the summit to service people of all abilities in having summit access all year round, and to construct additional one level cabins appropriately fitted for disabled access.

The introduction of Vehicle Number Plate Recognition technology enables more efficient customer processing and rapid access to the Resort facilities.

MBBARMB is engaging with Members of the Arts and Cultural communities in the Latrobe Valley and West Gippsland to enable them to participate in Resort activities and contribute to the artistic and cultural heritage aspects of the Resort.

6 Regulatory reform MBBARMB works proactively with Government Departments, and works closely with other ARMBs to contribute to the development of appropriate policy. This enables MBBARMB to have input to regulatory reforms that are being considered and ensures that matters especially relevant to the Mt Baw Baw Resort are heard and understood.

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FINANCEMt Baw Baw Alpine Resort Management Board

Financial Statements for the year ended 31 October 2013

TABLE OF CONTENTS Declaration by Accountable Officers ..........................................................................................................................................................31

Comprehensive Operating Statement ........................................................................................................................................................32

Balance Sheet .............................................................................................................................................................................................33

Statement of Changes in Equity .................................................................................................................................................................34

Cash Flow Statement .................................................................................................................................................................................35

Notes to the financial statements Note 1 Statement of Significant Accounting Policies ................................................................................................................................36

Note 2 Income from Transactions .............................................................................................................................................................43

Note 3 Expenses from Transactions ..........................................................................................................................................................43

Note 4 Other Economic Flows Included in Net Result ..............................................................................................................................44

Note 5 Receivables .....................................................................................................................................................................................44

Note 6 Inventories ......................................................................................................................................................................................44

Note 7 Reconciliations - Property, Plant & Equipment .............................................................................................................................44

Note 8 Payables .........................................................................................................................................................................................46

Note 9 Interest Bearing Liabilities ..............................................................................................................................................................46

Note 10 Provisions.....................................................................................................................................................................................47

Note 11 Revenue in Advance .....................................................................................................................................................................47

Note 12 Contributed Capital .......................................................................................................................................................................48

Note 13 Cash Flow Information .................................................................................................................................................................48

Note 14 Cash Assets ..................................................................................................................................................................................48

Note 15 Commitments ...............................................................................................................................................................................49

Note 16 Superannuation ............................................................................................................................................................................50

Note 17 Contingent Asset and Liabilities ...................................................................................................................................................51

Note 18 Capital Commitments ...................................................................................................................................................................51

Note 19 Responsible Persons Related Disclosures ..................................................................................................................................51

Note 20 Financial Instruments ...................................................................................................................................................................52

Note 21 Remuneration of Auditors ............................................................................................................................................................54

Note 22 Economic Dependency ................................................................................................................................................................54

Note 23 Events Occurring After Reporting Date ........................................................................................................................................54

Audit report ................................................................................................................................................................................................55-56

Page

31

Declaration by Accountable Officers In our opinion, the financial reports of Mt Baw Baw Alpine Resort Management Board, comprising of the Operating Statement, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and notes to and forming part of the financial statements, for the year ended 31 October 2013:

a) Present fairly the financial transactions of the Mt Baw Baw Alpine Resort Management Board during the year ended 31 October 2013 and its financial position as at 31 October 2013; and

b) Have been prepared in accordance with the Standing Direction 4.2 of the Financial Management Act 1994, applicable Financial Reporting Directions, Australian equivalents to International Financial Reporting Standards and other mandatory professional reporting requirements. At the date of signing, we are not aware of any circumstances which would render any particulars included in the report to be misleading or inaccurate.

SIGNED SIGNED SIGNED

Vicky Papachristos Stuart Ord Kaye HawkinsChair ChiefExecutiveOfficer GroupManager–Finance&ICT17 December 2013 17 December 2013 17 December 2013

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2013 2012Note $ $

Income from transactionsInterest 2(a) 5,050 22,222Sale of goods and services 847,823 1,023,691Government funding 2(b) 4,539,215 1,423,857Site & service charges 2(c) 459,959 435,776Visitor fees 2(d) 911,427 2,020,846Other revenue 2(e) 216,848 200,343

Total income from transactions 6,980,322 5,126,734

Expenses from transactionsEmployee benefits 3(a) 2,969,677 3,226,158Depreciation expense 3(b) 1,093,059 1,124,454Interest expense 3(c) 42,403 52,530Village operations 452,778 304,891Administration and corporate services 770,836 738,168Purchase of goods & services 1,356,322 1,549,009Other expenses 3(d) 649,144 481,948

Total expenses 7,334,219 7,477,159

Net result from transactions (353,897) (2,350,425)

Other economic flows included in net resultNet gain/(loss) on non-financial assets 4(a) (54,886) (7,481)Total other economic flows included in net result (54,886) (7,481)

Net result (408,783) (2,357,906)Other economic flows – other non-owner changes in equity - -

Comprehensive result (408,783) (2,357,906)

Mt Baw Baw Alpine Resort Management BoardCOMPREHENSIVE OPERATING STATEMENTFOR THE YEAR ENDED 31 OCTOBER 2013

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2013 2012Note $ $

Financial assetsCash Assets 14 563,408 254,318Receivables 5 168,933 109,842

Total financial assets 732,341 364,160

Non-financial assetsInventories 6 76,955 64,269Prepayments 133,017 90,900Property, plant and equipment 7(a) 18,038,593 18,701,541

Total non-financial assets 18,248,565 18,856,710

Total assets 18,980,906 19,220,870

LiabilitiesPayables 8 528,546 379,368Interest bearing liabilities 9 431,810 523,818Provisions 10 298,378 293,396Revenue in advance 11 66,102 74,435

Total liabilities 1,324,836 1,271,017

Net assets 17,656,070 17,949,853

EquityAccumulated surplus 685,928 1,094,711Asset revaluation reserve 11,546,440 11,546,440Contributed capital 12 5,423,702 5,308,702

Total Equity 17,656,070 17,949,853

Mt Baw Baw Alpine Resort Management BoardBALANCE SHEETAS AT 31 OCTOBER 2013

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Equity as at 1 Nov 2012 Net result

Transactions with owners in

their capacity as owners

Revaluation surplus on

Non-Current Assets

Equity at 31 Oct 2013

Accumulated surplus 1,094,711 (408,783) - - 685,928

Contributions by owners 5,308,702 - 115,000 - 5,423,702

Asset revaluation reserve 11,546,440 - - - 11,546,440

Total equity at end of financial year 17,949,853 (408,783) 115,000 - 17,656,070

Equity as at 1 Nov 2011 Net result

Transactions with owners in

their capacity as owners

Revaluation surplus on

Non-Current Assets

Equity at 31 Oct 2012

Accumulated surplus 3,452,618 (2,357,906) - - 1,094,712

Contributions by owners 5,308,702 - - - 5,308,702

Asset revaluation reserve 11,546,440 - - - 11,546,440

Total equity at end of financial year 20,307,760 (2,357,906) - - 17,949,854

Mt Baw Baw Alpine Resort Management BoardSTATEMENT OF CHANGES IN EQUITYFOR THE YEAR ENDED 31 OCTOBER 2013

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Mt Baw Baw Alpine Resort Management BoardSTATEMENT OF CHANGES IN EQUITYFOR THE YEAR ENDED 31 OCTOBER 2013

2013 2012Note $ $

Cash flows from operating activitiesCash payments in the course of operations (7,346,742) (7,235,061)Cash receipts in the course of operations 3,242,898 4,622,391Cash receipts from Government 4,573,137 1,429,243Interest paid (42,403) (52,530)Interest received 5,050 22,222GST recovered from the ATO 339,155 29,317

Net cash inflow/(outflow) from operating activities 13 771,095 (1,184,418)

Cash flows from investing activities

Payments from property, plant & equipment (552,497) (133,486)Proceeds from sale of assets 67,500 41,633

Net cash inflow/(outflow) from investing activities (484,997) (91,853)

Cash flows from financing activitiesRepayment of hire purchase and leases (92,008) (217,824)Proceeds - capital contributions by State Government 115,000 -

Net cash inflow/(outflow) from financing activities 22,992 (217,824)

Net increase/(decrease) in cash held 309,090 (1,494,095)Cash Balance at beginning of year 254,318 1,745,415

Cash balance at end of year 14 563,408 254,318

Mt Baw Baw Alpine Resort Management BoardCASH FLOW STATEMENTFOR THE YEAR ENDED 31 OCTOBER 2013

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Note 1: Statement of significant accounting policies

a) Statement of Compliance

The financial report is a general purpose financial report which has been prepared on an accrual basis in accordance with the Financial Management Act 1994 and applicable Australian Accounting Standards and Interpretations (AASs). AASs include the Australian equivalents to International Financial Reporting Standards. In complying with AASs, the Board has, where relevant, applied those paragraphs applicable to not-for-profit entities.

b) Basis of Preparation

The financial report has been prepared on a historical cost basis, except for the revaluation of certain non-current assets and financial instruments. Cost is based on the fair values of the consideration given in exchange for assets.

In the application of AASs, management is required to make judgments, estimates and assumptions about carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstance, the results of which form the basis of making the judgments. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision, and future periods if the revision affects both current and future periods.

Accounting policies are selected and applied in a manner which ensures that the resulting financial information satisfies the concepts of relevance and reliability, thereby ensuring that the substance of the underlying transactions or other events is reported.

The accounting policies set out below have been applied in preparing the financial report for the year ended 31 October 2013 and the comparative information presented for the year ended 31 October 2012.

c) Period accounting and comparatives

The accounting period covered by this financial report is 1 November 2012 to 31 October 2013.

d) Events after reporting date

Assets, liabilities, income and expenses arise from past transactions or other past events. Where the transactions result from an agreement between the Board and other parties, the transactions are only recognised when the agreement is irrevocable at or before balance date. Adjustments are made to amounts recognised in the financial statements for events which occur after the reporting date and before the date the statements are authorised for issue, where those events provide information about conditions which existed at the reporting date. Note disclosure is made about events between the reporting date and the date the statements are authorised for issue where the events relate to condition which arose after the reporting date and which may have a material impact on the results of subsequent years.

e) Property, plant and equipment

AcquisitionThe purchase method of accounting is used for all acquisitions of assets, being the fair value of assets provided as consideration at the date of acquisition plus any incidental costs attributable to the acquisition. Fair value is the amount for which the asset could be exchanged between willing parties in an arm’s length transaction. Assets acquired at no cost, or for nominal consideration, are recognised at their fair value at the date of acquisition. Only assets purchased which are over $1,000 will be recognised.

Where assets are constructed by the Board, the cost at which they are recorded includes all materials used in construction, direct labour, borrowing costs incurred during construction, and an appropriate share of directly attributable variable and fixed overheads.

Subsequent to initial recognition as assets, land, buildings and infrastructure assets (water, sewerage and land management

Notes to the Financial Statementsfor the year ended 31 October 2013

37

(car parks, roads, ski parks and trails)) are measured at their fair value, being the amount for which the assets could be exchanged between knowledgeable, willing parties in an arms length transaction. At balance date, the Board reviewed the carrying value of the individual classes of assets measured at fair value to ensure that each asset materially approximated its fair value.

All other non-current physical assets are to be measured at fair value.

Repairs & maintenancePlant and equipment maintenance is managed as part of an ongoing maintenance program. The costs of this maintenance are charged as expenses as incurred, except where they related to the replacement of a major component of an asset, in which case the costs are capitalised and depreciated. Other routine operating maintenance, repair costs and minor renewals are also charged as expenses as incurred.

RevaluationsNon-current physical assets measured at fair value are revalued in accordance with FRD 103D. This revaluation process normally occurs every five years, based upon the asset’s Government Purpose Classification. Revaluation increments or decrements arise from differences between carrying value and fair value.

Revaluation increments are credited directly to equity in the asset revaluation reserve, except that, to the extent that an increment reverses a revaluation decrement in respect of that class of asset previously recognised as an expense in the net result, the increment is recognised as income in determining the net result.

Revaluation decrements are recognised immediately as expenses in the net result, except that, to the extent that a credit balance exists in the asset revaluation reserve in respect of the same class of assets, they are debited to the revaluation reserve.

Revaluation increases and revaluation decreases relating to individual assets within an asset class are offset against one another within that class but are not offset in respect of assets in different classes.

Revaluation reserves are not normally transferred to accumulated surplus on de-recognition of the relevant asset.Land, building and infrastructure assets were reviewed for material movements according to FRD103D. A full revaluation of land, buildings and infrastructure assets was undertaken in the 2010/11 year.

Depreciation and amortisation of non-current assetsDepreciation is provided on property, plant and equipment, including freehold buildings but excluding land. Depreciation is generally calculated on a straight-line basis so as to write off the net cost or other revalued amount of each asset over its expected useful life to its estimated residual value. Leasehold improvements are depreciated over the period of the lease or estimated useful life, whichever is the shorter, using the straight-line method. The estimated useful lives, residual values and depreciation method are reviewed at the end of each annual reporting period.

The following useful lives of assets are used in the calculation of depreciation:

2013 2012

Buildings and improvements 15 to 30 years 15 to 30 yearsPlant and equipment 3 to 20 years 3 to 20 yearsLand management 5 to 50 years 5 to 50 yearsWater & Sewerage 25 to 80 years 25 to 80 yearsSki Lifts 10 to 40 years 10 to 40 years

Sale of fixed assetsIn accounting for the sale of fixed assets, only the net profit/(loss) on the disposal is shown in the Comprehensive Operating Statement as required under AAS.

f) Impairment of assets

All assets are assessed annually for indications of impairment, except for inventories (refer Note 1(g)).

If there is an indication of impairment, the assets concerned are tested as to whether their carrying value exceeds their possible recoverable amount. Where an asset’s carrying value exceeds its recoverable amount, the difference is written off by a charge to the Comprehensive Operating Statement, except to the extent that the write-down can be debited to an asset revaluation reserve amount applicable to that class of asset.

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It is deemed that, in the event of the loss of an asset, the future economic benefits arising from the use of the asset will be replaced unless a specific decision to the contrary has been made. The recoverable amount for most assets is measured at the higher of depreciated replacement cost and fair value less costs to sell. Recoverable amount for assets held primarily to generate net cash inflows is measured at the higher of the present value of future cash flows expected to be obtained from the asset and fair value less costs to sell.

g) Inventories

Stores and work in progress are stated at the lower of cost and net realisable value. Cost is based on the first-in, first-out principle and includes expenditure incurred in acquiring the inventories and bringing them to their existing condition. Net realisable value is determined on the basis of the Board’s normal selling pattern. Expenses associated with marketing and selling are deducted to determine net realisable value.

h) Employee Benefits

(i) Wages and salaries, annual leave and sick leaveLiabilities for wages and salaries, including non-monetary benefits, annual leave and accumulating sick leave expected to be settled within 12 months of the reporting date are recognised in the provision for employee benefits in respect of employee services up to the reporting date, classified as current liabilities and measured at their nominal values.

Those liabilities that are not expected to be settled within 12 months are recognised in the provision for employee benefits as current liabilities, measured at present value of the amounts expected to be paid when the liabilities are settled using the remuneration rate expected to apply at the time of settlement.

(ii) Long service leaveLiability for long service leave (LSL) is recognised in the provision for employee benefits

• Current liability unconditional LSL (representing 7 or more years of continuous service) is disclosed as a current liability even where the Board does not expect to settle the liability within 12 months because it will not have the unconditional right to defer the settlement of the entitlement should an employee take leave within 12 months.

The components of this current LSL liability are measured at:• present value - component that the Board does not expect to settle within 12 months; nominal value -

component that the Board expects to settle within 12 months.

• Non-current liability conditional LSL (representing less than 7 years of continuous service) is disclosed as a non-current liability. There is an unconditional right to defer the settlement of the entitlement until the employee has completed the requisite years of service.

This non current LSL liability is measured at present value.

(iii) Termination benefitsTermination benefits are payable when employment is terminated before the normal retirement date, or when an employee accepts voluntary redundancy in exchange for these benefits. The Board recognises termination benefits when it is demonstrably committed to either terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal or providing termination benefits as a result of an offer made to encourage voluntary redundancy. Benefits falling due more than 12 months after balance sheet date are discounted to present value.

(iv) Employee benefits on-costsEmployee benefits on-costs (payroll tax, workers compensation, superannuation, annual leave and LSL accrued while on LSL taken in service) are recognised separately from provision for employee benefits.

i) Income from transactions

Income is recognised to the extent that it is probable that the economic benefits will flow to the entity and the income can be reliably measured.

InterestInterest income is recognised using the effective interest method which allocates the interest over the relevant period.

39

Income from the sale of goods and servicesIncome from the sale of goods is recognised when:

• the Board no longer has any of the significant risks and rewards of ownership of the goods transferred to the buyer;

• the Board no longer has continuing managerial involvement to the degree usually associated with ownership, nor effective control over the goods sold;

• the amount of income, and the costs incurred or to be incurred in respect of the transactions, can be reliably measured;

• it is probable that the economic benefit associated with the transaction will flow to the Board; and • Sale of goods and services includes regulatory fees which are recognised at the time the regulatory fee is billed.

Visitor feesRevenue is recognised at the point of sale, when services are rendered or when a rate/tariff is fixed for service charges levied under Section 13 of the Alpine Resorts (Management) Act 1997. Infringements are issued to guests who do not pay their visitor fees under the Road Safety Act 1986 and the Road Safety (General) Regulations 2009.

Site & service chargesSite rental is recognised under the terms and conditions of each lease and in accordance with the Board’s role as a Committee of Management of any Crown land deemed to be permanently reserved under the Crown Lands Reserve Act 1978. Service charges are imposed on an annual basis, and revenue is recognised as income when an invoice is raised by the Board.

GrantsGrants from third parties (other than contributions by owners) are recognised as income in the reporting period in which the Board gains control over the underlying assets.For reciprocal grants (i.e. equal value is given back by the board to the provider), the Board is deemed to have assumed control when the Board has satisfied its performance obligations under the terms of the grant. For non-reciprocal grants, the Board is deemed to have assumed control when the grant is receivable or received. Conditional grants may be reciprocal or non-reciprocal depending on the terms of the grant.Grants and contributions for capital works from all sources are recognised as operating revenue when an entitlement is established, and disclosed in the operating statement as government grants. However grants and contributions received from Victorian State Government that are deemed as being in the nature of owner’s contributions, in accordance with FRD 119 Contributions by Owners are accounted for as Equity – Contributed Capital.

j) Expenses from transactions

Expenses are recognised as they are incurred and reported in the financial year to which they relate.

Employee expensesThese expenses include all costs related to employment (other than superannuation which is accounted for separately) including wages and salaries, fringe benefit tax, leave entitlements, redundancy payments and Work Cover premiums.

SuperannuationThe amount recognised in the comprehensive operating statement in relation to employer contributions is simply the employer contributions that are paid or payable to these plans during the reporting period.

Interest expenseInterest expense is recognised in the period in which it is incurred and include;

• short term borrowings• finance lease charges

Other operating expensesOther operating expenses generally represent the day to day running costs incurred in normal operations.

Supplies and servicesSupplies and services expenses are recognised as an expense in the reporting period in which they are incurred. The carrying amounts of any inventories held for distribution are expensed when distributed.

k) Cash and cash equivalents

Cash and deposits, including cash equivalents, comprise cash on hand and cash at bank, deposits at call and highly liquid investments with an original maturity of three months or less, which are readily convertible to known amounts of cash and are subject to insignificant risk of changes in value.

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For the cash flow statement presentation purposes, cash and cash equivalents includes bank overdrafts, which are included as interest bearing liabilities on the balance sheet.

l) Support Payments

Support payments received from the Department of Environment and Primary Industry during the year ended 31 October 2013 were brought to account upon receipt 2013: $4,580,083 (2012: $1,423,857),

m) Receivables

Receivables consist predominantly of debtors in relation to goods and services, accrued investment income and GST input tax credits recoverable.

Receivables are recognised initially at fair value and subsequently measured at amortised cost, using the effective interest rate method, less any accumulated impairment.

A provision for doubtful receivables is made when there is objective evidence that the debts may not be collected and bad debts are written off when identified.

n) Payables

Payables represent liabilities for goods and services provided to the Board that are unpaid at the end of the financial year. Payables are initially measured at fair value, being the cost of the goods and services, and then subsequently measured at amortised cost.

o) Interest Bearing Liabilities

Interest bearing liabilities are initially measured at fair value, being the cost of the interest bearing liabilities, net of transaction costs.

Subsequent to initial recognition, interest bearing liabilities are measured at amortised cost with any difference between the initial recognised amount and the redemption value being recognised in profit and loss over the period of the interest bearing liability using the effective interest rate method.

p) Finance costs

Finance costs are recognised as expenses in the period in which they are incurred and include:• interest on bank overdrafts and short-term and long-term borrowings; • amortisation of ancillary costs incurred in connection with the arrangement of borrowing; and• finance lease charges;

q) Contributed capital

Contributions to the Board are recognised as contributed capital with the approval of the Minister for Finance and when the transfer satisfies the definition of contribution by owners as per FRD 119. Contributed capital is disclosed in the Statement of changes in Equity and Note 12.

r) Accounting for Leases and Hire Purchases

Finance leases are recognised as assets and liabilities at amounts equal to the fair value of the lease property or, if lower, the present value of the minimum lease payment, each determined at the inception of the lease. The lease asset is depreciated over the shorter of the estimated useful life of the asset or the term of the lease. Minimum lease payments are allocated between the principal component of the lease liability, and the interest expense calculated using the interest rate implicit in the lease, and charged directly to the Comprehensive Operating Statement. Contingent rentals associated with finance leases are recognised as an expense in the period in which they are incurred.

Operating lease payments, including any contingent rentals, are recognised as an expense in the Comprehensive Operating Statement on a straight-line basis over the lease term, except where another systematic basis is more representative of the time pattern of the benefits derived from the use of the leased asset. Details of hire purchase commitments are shown in Note 15.

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s) Goods and services tax

Income, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the taxation authority. In this case it is recognised as part of the cost of acquisition of the asset or as part of the expense.

Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the taxation authority is included with other receivables or payables in the balance sheet.

Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to the taxation authority, are presented as operating cash flow.

Commitments and contingent assets and liabilities are presented on a gross basis.

t) Provisions

Provisions are recognised when the Board has a present obligation, the future sacrifice of economic benefits is probable, and the amount of the provision can be measured reliably.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at reporting date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows.

u) Commitments

Commitments are disclosed at their nominal value and inclusive of the GST payable.

v) Contingent assets and contingent liabilities

Contingent assets and contingent liabilities are not recognised in the balance sheet, but are disclosed by way of a note and, if quantifiable, are measured at nominal value. Contingent assets and liabilities are presented inclusive of GST receivable or payable respectively.

w) New Accounting Standards for Application in Future Periods

Certain new AASs have been published that are not mandatory for the 31 October 2013 reporting period. DTF assesses the impact of these new standards and advises of their applicability and early adoption where applicable. As at 31 October 2013, the following standards and interpretations (applicable to departments) had been issued but were not mandatory for the financial year ending 31 October 2013. The Board has not early adopted these standards. Please refer to the table on the following page.

x) Rounding

Unless otherwise stated, amounts are rounded to the nearest dollar.

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Standard/Interpretation Summary Applicable for annual reporting periods beginning on

Impact on financial statements

AASB 9 Financial instruments This standard simplifies requirements for the classification and measurement of financial assets resulting from Phase 1 of the IASB’s project to replace IAS 39 Financial Instruments: Recognition and Measurement (AASB 139 Financial Instruments: Recognition and Measurement).

1 Jan 2015 Subject to AASB’s further modifications to AASB 9, together with the anticipated changes resulting from the staged projects on impairments and hedge accounting, details of impacts will be assessed.

AASB 13 Fair Value Measurement This Standard outlines the requirements for measuring the fair value of assets and liabilities and replaces the existing fair value definition and guidance in other Australian accounting standards. AASB 13 includes a ‘fair value hierarchy’ which ranks the valuation technique inputs into three levels using unadjusted quoted prices in active markets for identical assets or liabilities; other observable inputs; and unobservable inputs.

1 Jan 2013 Disclosure for fair value measurements using unobservable inputs are relatively detailed compared to disclosure for fair value measurements using observable inputs. Consequently, the Standard may increase the disclosures required assets measured using depreciated replacement cost.

AASB 119 Employee Benefits In this revised Standard for defined benefit superannuation plans, there is a change to the methodology in the calculation of superannuation expenses, in particular there is now a change in the split between superannuation interest expense (classified as transactions) and actuarial gains and losses (classified as ‘Other economic flows – other movements in equity’) reported on the comprehensive operating statement.

1 Jan 2013 Not-for-profit entities are not permitted to apply this Standard prior to the mandatory application date. While the total superannuation expense is unchanged, the revised methodology is expected to have a negative impact on the net result from transactions a few Victorian public sector entities that report superannuation defined benefit plans.

AASB 1053 Application of Tiers of Australian Accounting Standards

This Standard establishes adifferential financial reportingframework consisting of twotiers of reporting requirementsfor preparing general purposefinancial statements.

1 July 2013 The Victorian Government is currently considering the impacts of Reduced Disclosure Requirements (RDRs) for certain public sector entities, and has not decided if RDRs will be implemented in the Victorian public sector.

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Note 2: Income from transactions

Revenue includes:

(a) Interest

Interest on bank deposits 5,050 22,222Total interest revenue 5,050 22,222(b) Government funding

DSE support payments 4,200,000 1,370,000

Other Government Funding 339,215 53,857Total Government funding 4,539,215 1,423,857(c) Site & service charges

Annual service charge 346,395 330,233

Site rental 113,564 105,543Total revenue from site & service charges 459,959 435,776(d) Visitor fees

Resort entry fees 301,787 623,509

Ski field income 341,639 1,046,235

Accommodation/Guest Services 254,393 309,817

Toboggan levy 13,608 41,285Total revenue from visitor fees 911,427 2,020,846(e) Other revenue

Marketing 77,367 31,040

Miscellaneous 34,081 20,268

Commission received 47,384 70,170

Staff accommodation 58,016 78,865Total other revenue 216,848 200,343

Note 3: Expenses from transactions

(a) Employee benefits

Defined contributions superannuation plans 237,001 226,826

Salaries, wages, annual leave and long service leave 2,595,754 2,739,402

Backpay & Long Service Leave Accruals - 43,783

Other – FBT and Payroll Tax 136,922 216,146Total employee benefits 2,969,677 3,226,158(b) Depreciation expense

Depreciation of non-current assets 1,093,059 1,124,454Total depreciation expense 1,093,059 1,124,454(c) Interest expense

Hire purchase interest 42,344 50,821

Other interest 59 1,709Total interest expense 42,403 52,530(d) Other operating expenses

Audit fees – Note 21 22,200 18,600

Insurance 147,153 138,042

Marketing 479,791 325,306Total other expenses 649,144 481,948

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Note 4: Other economic flows included in net result

Net gain/(loss) on sale of physical assets

Net gain/(loss) on disposal of physical asset (54,886) (7,481)Total gain/(loss) on sale of physical assets (54,886) (7,481)

Note 5: Receivables

Current

Debtors 155,386 80,380

GST Receivable 12,146 24,601

Sundry Debtors 1,401 4,861Total Receivables 168,933 109,842

Note 6: Inventories

Current inventories

Supplies & consumables (at cost) 58,991 64,269

Fuel 17,964 -Total Inventories 76,955 64,269

Note 7(a): Reconciliations – Property, Plant & Equipment

Reconciliations of the carrying amounts of each class of property, plant and equipment at the beginning and end of the current and previous financial year are set out below:2013

Carrying amount – start

of yearAdditions Disposals Adjustment Revaluation Depreciation

expenseCarrying amount

– end of year

Land 3,506,000 - - - - - 3,506,000Buildings & Improvements

6,837,430 4,545 - - - (255,750) 6,586,225

Water & sewerage infrastructure

2,125,110 - - - - (52,090) 2,073,020

Land Management 2,518,790 259,679 - - - (389,130) 2,389,339Plant, Vehicles & Equipment

1,155,091 167,261 (122,386) - - (257,809) 942,157

Ski Lifts 2,559,120 121,012 - - - (138,280) 2,541,852Total 18,701,541 552,497 (122,386) - - (1,093,059) 18,038,593

2012Carrying

amount – start of year

Additions Disposals Adjustment Revaluation Depreciation expense

Carrying amount – end of year

Land 3,506,000 - - - - - 3,506,000Buildings & Improvements

7,081,000 12,340 - - - (255,910) 6,837,430

Water & sewerage infrastructure

2,177,200 - - - - (52,090) 2,125,110

Land Management 2,877,100 - - - - (358,310) 2,518,790Plant, Vehicles & Equipment

1,346,526 148,167 (49,114) - - (290,488) 1,155,091

Ski Lifts 2,685,300 - - - - (126,180) 2,559,120Total 19,673,126 160,507 (49,114) - - (1,082,978) 18,701,541

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Note 7(b): Property, plant and equipment

Aggregate depreciation allocated and recognized as an expense during the year

Buildings and improvements 255,750 255,910

Plant, Vehicles and equipment 257,809 331,964

Land management 389,130 358,310

Water & Sewerage 52,090 52,090

Ski Lifts 138,280 126,180Total depreciation expense 1,093,059 1,124,454

Note 7(c) Property, plant and equipment

Land

At independent valuation 31st Oct 2011 3,506,000 3,506,000

Buildings & Improvements

At independent valuation 31st Oct 2011 7,081,000 7,081,000

At Cost 16,885 12,340

Accumulated depreciation (511,660) (255,910)

Total Buildings and improvements 6,586,225 6,837,430

Water & Sewerage infrastructure

At independent valuation 31st Oct 2011 2,177,200 2,177,200

Accumulated depreciation (104,180) (52,090)

Total Water & Sewerage infrastructure 2,073,020 2,125,110

Land Management

At independent valuation 31st Oct 2011 2,877,100 2,877,100

At Cost 259,679 -

Accumulated depreciation (747,440) (358,310)

Total Land Management 2,389,339 2,518,790

Plant, Vehicles and Equipment

At cost 2,908,510 2,863,635

Accumulated depreciation (1,966,353) (1,708,544)

Total Plant, Vehicles and Equipment 942,157 1,155,091

Ski Lifts

At independent valuation 31st Oct 2011 2,685,300 2,685,300

At Cost 121,012 -

Accumulated depreciation (264,460) (126,180)

Total Ski Lifts 2,541,852 2,559,120

46

Note 8: Payables

Current

Contractual

Creditors 301,646 211,502

Superannuation payable 22,151 23,828

Accruals 174,282 96,600

498,079 331,930

Statutory

PAYG-Withholding payable 30,467 47,438

30,467 47,438Total payables 528,546 379,368

Note 9: Interest bearing liabilities

Current

Net hire purchase liability - 48,990

Net finance lease liability 161,678 129,940

161,678 178,930

Non-current

Net finance lease liability 270,132 344,888

270,132 344,888Total interest bearing liabilities 431,810 523,818

47

Note 10: Provisions

Current

Employee Benefits

Unconditional and expected to be settled within 12 months 195,158 157,438

Unconditional and expected to be settled after 12 months 48,790 47,637

243,948 205,075

Provisions related to employee benefit on-costs

Unconditional and expected to be settled within 12 months 33,177 26,764

Unconditional and expected to be settled after 12 months 8,294 8,098

41,471 34,863Total current provisions 285,419 239,938

Non-current

Employee benefits 11,076 45,691

Provisions related to employee benefit on-costs 1,883 7,767Total non-current provisions 12,959 53,458Total provisions 298,378 293,396

(a)Employee benefits and related on-costs

Current employee benefits

Annual leave entitlements (including leave loading) 187,462 111,400

Time in Lieu entitlements 40,079 79,402

Unconditional long service leave entitlements 16,408 14,273

Non-current employee benefits

Conditional long service leave entitlements 11,076 45,691Total employee benefits 255,024 250,766

Current on-costs 41,471 34,863

Non-current on-costs 1,883 7,767Total on-costs 43,354 42,630Total employee benefits and related on-costs 298,378 293,396

Note 11: Revenue in advance

CurrentLease revenue received in advance 8,333 8,333

8,333 8,333Non-current

Lease revenue received in advance 57,769 66,10257,769 66,102

Aggregate carrying amount of revenue received in advanceCurrent 8,333 8,333Non-current 57,769 66,102

66,102 74,435

48

Note 12: Contributed Capital

The equity from the Alpine Resorts was allocated during 1998 by the Minister for Conservation and Land Management pursuant to section 59 of the Alpine Resort (Management) Act 1997.

The allocation received from the Alpine Resorts Commission included revenue and capital items.

An amount of $4,066,078 represents the capital portion of the contribution received from the Alpine Resorts Commission as at 30 April 1998. (This amount is included in the total contributed capital at 31 October 2013 of $4,066,078.)

Equity and movements in equity are summarised in the Statement of changes in Equity.

Pursuant to Financial Reporting Direction No 2A (FRD 119) under the Financial Management Act 1994, during the

reporting period, the Board received $115,000 of Contributed capital form the Department of Environment and Primary Industry ($ nil capital contribution received 2012).

Note 13: Cash flow information

Reconciliation of results to net cash inflow/(outflow) from operating activitiesNet results (408,783) (2,357,906)Non-cash movements

Depreciation 1,093,059 1,124,454

Loss/(gain) on disposal of Assets 54,886 7,481

Movements in assets and liabilities

Decrease/(Increase) in Receivables (59,091) (81,365)

Decrease/(Increase) in Inventories (12,686) 354

Decrease/(Increase) in Prepayments (42,117) 30,350

Increase/(Decrease) in Payables 149,178 146,421

Increase/(Decrease) in Provisions 4,982 (45,874)

Increase/(Decrease) in Revenue received in advance (8,333) (8,333)Net Cash inflow/(outflow) from operating activities 771,095 1,184,418

Note 14: Cash Assets

Cash at year end, as shown in the Cash Flow Statement, is reconciled to the Balance Sheet as follows:

Cash held for Alpine Risk Mitigation Program 95,000 -

Operational Funds 468,408 254,318

Total 563,408 254,318

49

Note 15: Commitments

Revenue

Operating Leases – Crown LandFor operating leases that are non-cancellable leases, the minimum lease payments are expected within the following periods:

- Not later than one year 48,913 63,203

- Later that one year but not later than five years 190,408 204,634

- Later than five years 602,918 637,605

842,239 905,442Leasing powers are defined in Section 7 of the Alpine Resorts (Management) Act 1997. Lease terms of up to 99 years are permissible under this section. The Board also has the power to grant leases up to 21 years as a Committee of Management under the Crown Land (Reserves) Act 1978. New leases are granted on the basis that the rental will be negotiated at market value. All renewal of leases and/or variations of leases will be granted on the basis that the rental will be negotiated at market value.

Lease receivables:

New Leases

The Site Holder shall pay to the Board by either of the following methods:(a) Payment of the site value of the land as determined by valuation at the time of the

execution of the lease as a single up-front payment; or(b) An initial payment of the site holders interest (determined by valuation) and an

ongoing annual market rent (determined by valuation) for the term of the lease.

Existing LeasesRental of a lease shall be achieved by payment of market rent (determined by valuation) for the term of the lease.

Lease payables:

Operating LeasesCommitments in relation to leases contracted for at the reporting date but not recognised in the financial report as liabilities, payable:

- Not later than one year 22,704 22,704

- Later that one year but not later than five years 45,408 68,112

68,112 90,816

Represented by:

Non-cancellable operating leases 68,112 90,816

Hire Purchase

Commitments in relation to hire purchase are payable as follows:

- Not later than one year - 50,029

Minimum hire purchase payments - 50,029

Less: Future finance charges - (1,039)

- 48,990

Representing hire purchase liabilities:

Current (refer to Note 9) - 48,990

- 48,990

50

Finance Leases

Commitments in relation to finance leases are payable as follows:

- Not later than one year 192,153 166,693

- Later that one year but not later than five years 301,901 376,851

- Later than five years - 20,558

Minimum finance lease payments 494,054 564,102

Less: Future finance charges (62,244) (89,274)

431,810 474,828

Representing finance lease liabilities:

Current (refer to Note 9) 161,678 129,940

Non-current (refer to Note 9) 270,132 344,888

431,810 474,828

Note 16: Superannuation

Employee superannuation contributionsThe Board does not have any unfunded superannuation liability as full contribution has been made by the Board to the relevant funds.Superannuation contributions for the reporting period are included as part of the employee benefits in the Comprehensive Operating Statement.The name and details of the employee superannuation funds and contributions made by the Board are as follows:

Name of Fund Type Cont. Rate

Contribution for the year

2013

Contribution for the year 2012

AMP Life Accumulated 9% 9,499 8,737

Australian Super Accumulated 9% 26,574 17,009

BT Super for Life Accumulated 9% 18,863 13,752

Cbus Accumulated 9% 7,471 8,567

Colonial First State Superannuation Accumulated 9% 10,554 12,396

HESTA Accumulated 9% 2,216 2,800

SunSuper Accumulated 9% 5,664 -

First Super Accumulated 9% 3,905 -

ANZ Bank Accumulated 9% 2,348 -

Vision Super Accumulated 9% 2,347 -

SuperWrap Accumulated 9% 1,599 -

CLUB PLUS Accumulated 9% 1,336 -

LUCRF Accumulated 9% 1,324 -

HostPlus Super Accumulated 9% 34,189 30,166

ING Superannuation Fund Accumulated 9% - 4,156

REST Accumulated 9% 9,852 12,353

Tasplan Accumulated 9% 3,897 2,227

Telstra Super Accumulated 9% 5,099 5,156

Turra Superannuation Fund Accumulated 9% - 28,033

VicSuper Accumulated 9% 85,192 110,165

Other Accumulated 9% 4,465 10,710

Total 236,394 266,227

The requirements of the Superannuation Industry (Supervision) Act 1993 are fully complied with

As at 31 October 2013 there were outstanding amounts owing to these schemes of $ 22,151 (2012 $23,828) (included in creditors and accruals at Note 8)

51

Note 17: Contingent assets and liabilities

At balance date the Board had no contingent assets or liabilities. (2012 - nil)

Note 18: Capital commitments

At balance date the Board had no capital commitments. (2012 - nil)

Note 19: Responsible Persons Related Disclosures

(a) Responsible personsThe names of the persons who were responsible persons at any time during the financial year are:Responsible Minister From To

The Hon. Ryan James Smith MP, Minister for Environment & Climate Change 1st Nov 2012 31st Oct 2013

Board Members

Mr Ralph Booth (Chairperson) 1st Nov 2012 31st May2013

Ms Vicky Papachristos (Deputy Chair/Chairperson from 1st Jun 2013) 1st Nov 2012 31st Oct 2013

Mr Randall Cohen (Deputy Chair from 1st Jun 2013) 1st Nov 2012 31st Oct 2013

Mr Wally Tabensky 1st Nov 2012 31st Oct 2013

Ms Jacqueline McLeod 1st Nov 2012 31st Oct 2013

Mr Ben Dunlop 24th May 2013 31st Oct 2013

Accountable Officers

Mr Stuart Ord – CEO 1st Nov 2012 31st Oct 2013

(b) RemunerationThe number of Responsible Persons whose remuneration from the Board was within the specified bands are as follows:

2013 2012

No No

$0 to $9,999 6 4

$10,000 to $19,999 - 1

$200,000 to $209,999 1 1

Total 7 6

The remuneration received or due and receivable by the Responsible persons in connection with the management of the Resort during the reporting period was: $249,928 $271,252

The relevant amounts relating to the Minister are reported separately in the Department of Premier and Cabinet’s Financial Statements.

(c) Executive RemunerationThere were two executive officers whose remuneration, including termination payments, from the Board exceeded $100,000.

Total Remuneration Base Remuneration

2013 2012 2013 2012

Income Band No. No. No. No.

$110,000 to $119,999 1 1 1 1

$120,000 to $129,999 1 1 1 1

Total Annual Full Time Equivalent 2 2 2 2

Total Remuneration $245,586 $245,586 $245,586 $245,586

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Note 20: Financial Instruments

The Board’s principal financial instruments comprise;Cash Assets, Receivables (excluding statutory receivables), Payables (excluding statutory payables), and Finance lease payablesThe carrying amounts of the Boards contractual financial assets and financial liabilities by category are in the Table below;

Note Category 2013 2012

Contractual financial assets $ $

Cash and deposits 14 Cash and cash equivalents 563,408 254,318

Receivables:

Debtors 5 Loans & receivables at amortised cost 155,386 80,380

Sundry Debtors 5 Loans & receivables at amortised cost 1,401 4,861

Total contractual financial assets 720,195 339,559

Contractual financial liabilities

Payables:

Creditors 8 Financial liabilities at amortised cost 301,646 211,502

Superannuation Payable 8 Financial liabilities at amortised cost 22,151 23,828

Accruals 8 Financial liabilities at amortised cost 174,282 96,600

Lease liabilities 9 Financial liabilities at amortised cost 431,810 523,818

Total contractual financial liabilities 929,889 855,748

Note: The total amounts disclosed here exclude statutory amounts (e.g. amounts owing from the Victorian Government and GST input tax credits recoverable, and taxes payable)

(a) Credit risk exposureCredit risk arises from the financial assets of the Board, which comprise cash and cash equivalents. The Board’s exposure to credit risk arises from the potential default of counter party on their contractual obligations resulting in financial loss to the Board. Credit risk is measured at fair value and is monitored on a regular basis.

CarryingAmount

Not past due and not

impaired

Past due but not impaired

Less than 1 month

1-3 months 3 months – 1 year

1-5 years

2013 $ $ $ $ $ $

Receivables:

Debtors 155,386 56,565 40,108 23,470 35,243 -

Sundry Debtors 1,401 - - - 1,401 -

Total 156,787 56,565 40,108 23,470 36,644 -

2012

Receivables:

Debtors 80,380 - 79,490 - 890 -

Sundry Debtors 4,861 - - - 4,861 -

Total 85,241 - 79,490 - 5,751 -

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(b) Liquidity riskLiquidity arises when the Board is unable to meet its financial obligations as they fall due. The Board operates under the Government fair policy of settling financial obligations within 30 days and in the event of a dispute, will make payment within 30 days from the date of resolution. It also continuously manages risk through monitoring future cash flows and maturities planning to ensure adequate holding of high quality liquid assets and dealing in highly liquid markets.

CarryingAmount

NominalAmount

Maturity DatesLess than 1

month 1-3 months 3 months – 1 year 1-5 years

2013 $ $ $ $ $ $

Payables:

Creditors 301,646 301,646 210,981 90,665 - -

Superannuation payable 22,151 22,151 - 22,151 - -

Accruals 174,282 174,282 - - 174,282 -

Borrowings:

Lease liabilities 431,810 431,810 13,473 26,946 121,259 270,132

Total 929,889 929,889 224,454 139,762 295,541 270,132

2012

Payables:

Creditors 211,502 211,502 148,052 63,450 - -

Superannuation payable 23,828 23,828 - 23,828 - -

Accruals 96,600 96,600 - - 96,600 -

Borrowings:

Lease liabilities 523,818 523,818 14,911 29,822 134,197 344,888

Total 855,748 855,748 162,963 117,100 230,797 344,888

(c) Market riskThe Board’s exposure to market risk is limited with almost no exposure to foreign currency or other price risks. Cash balances are not interest bearing, and interest bearing liabilities are at a fixed rate. The Board is therefore not susceptible to movements in interest rates, and the carrying amount of financial assets and liabilities approximates their fair value. The table below reflects the Boards interest rate exposure on financial instruments.

Weightedaverage

interest rate

CarryingAmount

Interest rate exposure

Fixed Interest Variable interest rate

Non-interest bearing

2013 $ $ $ $

Contractual financial assets

Financial assets

Cash and deposits 1.8% 563,408 - 95,000 468,408

Debtors 156,787 - - 156,787

Total financial assets 720,195 - 95,000 625,195

Financial liabilities

Creditors 498,079 - - 498,079

Lease liabilities 8.6% 431,810 431,810 - -

Total financial liabilities 929,889 431,810 - 498,079

54

2012

Contractual financial assets

Financial assets

Cash and deposits n/a 254,318 - - 254,318

Debtors 85,241 - - 85,241

Total financial assets 339,559 - - 339,559

Financial liabilities

Creditors 331,930 - - 331,930

Lease liabilities 8.3% 523,818 523,818 - -

Total financial liabilities 855,748 523,818 - 331,930

(d) Interest Rate Risk Interest rate risk

-1% +1%

Carrying Amount Net result Equity Net result Equity

2013 $ $ $ $ $

Financial Assets

Cash (i) 95,000 (950) (950) 950 950

Financial Liabilities

Interest bearing liabilities (ii) 431,810 4,318 4,318 (4,318) (4,318)

Total 526,810 3,368 3,368 (3,368) (3,368)

2012

Financial Assets

Cash (i) - - - - -

Financial Liabilities

Interest bearing liabilities (ii) 523,818 5,238 5,238 (5,238) (5,238)

Total 523,818 5,238 5,238 (5,238) (5,238)

NotesCash and deposits include a deposit of $95,000 (2012 $nil) that is exposed to floating rates movements. Sensitivity to these movements in the market interest rate: $95,000 x .01 = $950 (2012 $nil)Interest bearing liabilities include amounts of $nil (2012 $nil) that are exposed to floating rates movement. Sensitivity to these movements in market interest rates are $nil

(e) Fair value – The carrying amounts of financial assets and financial liabilities recognized at the balance date, consisting of cash, receivable, payables, and borrowings, represent fair value.

Note 21: Remuneration of Auditors

Audit fees paid or payable to the Victorian Auditor General’s Office for the audit of the Board’s financial reports.Audit Fees $22,200 $18,600

Note 22: Economic Dependency

The Board is dependent on the continued financial support of the State Government and in particular, the Department of Environment and Primary Industry. The Department of Environment and Primary Industry has provided confirmation that it will continue to provide the Board adequate cash flow support to meet its current and future obligations as and when they fall due for a period up to 16th December 2014. Accordingly these financial statements have been prepared on a going concern basis.

Note 23: Events Occurring After Reporting Date

There was no event that occurred after balance date that would have a material effect on the accounts.

55

56

ADDRESS TO THE MINISTER COMPLIANCE INDEX – to Disclosure RequirementsThe Annual Report of the Mt Baw Baw Alpine Resort Management Board is prepared in accordance with all relevant Victorian

legislation. This index has been prepared to facilitate identification of the Board’s compliance with statutory disclosure

requirements.

LEGISLATION REQUIREMENT .................................................................................................... PAGE

MINISTERIAL DIRECTIONS — Report of Operations – FRD GuidanceAccountable Officer’s declaration SD 4.2(j) Sign-off requirements ............................................................................................................................. Inside Front Cover

Charter and purpose FRD 22D Objectives, functions, powers and duties ................................................................................................ 16-17

FRD 22D Manner of establishment and the relevant Ministers ............................................................................... 16

FRD 22D Nature and range of services provided .................................................................................................... 16

Financial information FRD 22D Operational and budgetary objectives .................................................................................................... 8

FRD 22D Summary of the financial results ........................................................................................................... 8

FRD 22D Major changes or factors affecting performance .................................................................................... 8

FRD 22D Subsequent events .................................................................................................................................. 7

FRD 22D Significant changes in financial position during the year ........................................................................ 8

Governance and organisatiional structure FRD 22D & SD2.2(f) Organisational structure ......................................................................................................................... 20

FRD 22D Occupational Health and Safety policy .................................................................................................... 25

FRD 22D Employment and conduct principles ....................................................................................................... 25

FRD 29 & 22D Workforce Data disclosures .................................................................................................................... 25-26

FRD 15B Executive Officer disclosures .................................................................................................................. 51

Other Information FRD 10 Disclosure index ..................................................................................................................................... Inside Back Cover

FRD 25 & 22D Victorian Industry Participation Policy disclosures ................................................................................. 22

FRD 22C Details of consultancies in excess $10,000 ............................................................................................ 22

FRD 22C Details of consultancies under $10,000 ................................................................................................. 22

FRD 22D Disclosure of government advertising expenditure ................................................................................. 21

FRD 12A Disclosure of major contracts ................................................................................................................. 22

FRD 22D Application and operation of Freedom of Information Act 1982 ........................................................... 21

FRD 22D Compliance with Building Act 1993 ....................................................................................................... 25

FRD 22D Statement on National Competition Policy ............................................................................................. 22

FRD 22D Application and operation of the Protected Disclosures Act 2012 ........................................................ 22

FRD 22D Statement of availability of other information ........................................................................................ 21

SD 4.5.5 Risk management compliance attestation ............................................................................................... 21

SD 4.5.5.1 Insurance attestation ............................................................................................................................... 21

PC 2012/02 Gifts, benifits and hospitality attestation ................................................................................................. 21

SD 4.2(g) General information requirements .......................................................................................................... Entire Document

LEGISLATION Alpine Resorts Management Act 1997 ..........................................................................................................................................

Building Act 1983 ................................................................................................................................................................

Financial Management Act 1994 ..................................................................................................................................................

Freedom of Information Act 1982 .................................................................................................................................................

Protected Disclosures Act 2012 ....................................................................................................................................................

Victorian Industry Participation Policy Act 2003 .........................................................................................................................

Print and Design

FRD 30 Standard requirements for the design and print of annual reports .......................................................... Entire Document

January 2014

The Honourable Ryan Smith, MP Minister for Environment and Climate Change Level 7, 8 Nicholson St EAST MELBOURNE VIC 3002

Dear Minister Smith

MT BAW BAW ALPINE RESORT MANAGEMENT BOARD – ANNUAL REPORT We have much pleasure in submitting to you for presentation to Parliament, the Annual Report of the Mt Baw Baw Alpine Resort Management Board, covering the period 1 November 2012 to 31 October 2013.

The Annual Report has been prepared in accordance with the Financial Management Act 1994 and the Alpine Resorts (Management) Act 1997.

On behalf of the Board, we extend our appreciation for your support and also the support and cooperation of the Department of Environment and Primary Industries throughout the year.

Yours sincerely,

Vicky Papachristos Stuart Ord CHAIR CHIEF EXECUTIVE OFFICER BOARD OF MANAGEMENT

MT BAW BAW ALPINE RESORT MANAGEMENT BOARD The Mt Baw Baw Alpine Resort Management Board (the Board) is responsible for the development and management of the Mt Baw Baw Alpine Resort, comprising 355 hectares, situated at an altitude of approximately 1,500 metres and bound on two sides by the Baw Baw National Park and two sides by Baw Baw State Forest.

The Board assumed management of the Mt Baw Baw Alpine Resort from the former Alpine Resorts Commission on May 1, 1998 and is accountable for the development, promotion, management and use of the resort on a sustainable basis. It provides a diverse range of services and performs its functions in an environmentally sound way.

The Board operates under the Alpine Resorts (Management) Act 1997. The Act sets out the objectives for the management of Victoria’s alpine resorts.

Resort use is to be for alpine recreation and tourism, in all seasons of the year; and accessible to persons from varied cultural and economic groups. The management of the resort is to be undertaken in a manner which is respectful of the alpine environment having regard to economic, environmental and cultural sustainability.

ALPINE RESORTS STRATEGIC PLAN 2012 The Alpine Resorts Strategic Plan 2012 (2012 Plan) was released by Government in December 2012.

This plan provides the guidance for the long term planning and management of Victoria’s six alpine resorts, and has as its guiding vision that:

Victoria’s alpine resorts will be vibrant, growing and sustainable places, delivering alpine recreational and tourism experiences that are available to all.

The Board, in reviewing its own Corporate and Strategic Plans, has ensured alignment with the 2012 Plan, in particular focusing upon the actions detailed in the six key Strategic Objective areas of Enhancing the Visitor Experience and Developing Resorts, Delivering Resort Services and Infrastructure Efficiently and Accountably, Building Partnerships, Respecting the Alpine Environment, Broadening Access Opportunities and Regulatory Reform.

Contact InformationMt Baw Baw Alpine Resort Management BoardPO Box 117, Rawson VIC 3825Phone 03 5165 1136

Facsimile 03 5165 1125

Email info@mountbawbaw.com.au

Web www.mountbawbaw.com.au

Map Reference Melways Map 528 C5

2013 Annual Report Mt Baw Baw Alpine Resort Management Board

CMYK